Finance Director

The company was a fully quoted multi site business manufacturing and supplying a range of products to the wholesale and retail sectors, principally garden centres, DIY outlets and the supermarket chains. Peak turnover was £63m.

A loss making business was closed generating net cash from the process. A similar business that represented 36% of the Group’s operating profits was sold for a consideration representing 54% of the Group’s market capitalisation.

The balance sheet was restructured including a Capital Reduction and the re-negotiation of banking facilities. £4m was returned to shareholders by way of a Tender Offer and in the process the shareholder base was re-aligned. A 50% stake was acquired in the market leader for the supply of specialised garden products.

Working capital management was significantly improved generating an underlying reduction in borrowings of over £5m and in interest payable of £0.7m. A company wide cost reduction programme was implemented saving in excess of £0.5m.

An IT system was developed to measure the profitability of each delivery. Management’s awareness and understanding of key business performance drivers was improved.

Forecasting procedures were introduced for both the profit and loss account and the balance sheet. Detailed cash flow forecasting was also introduced. The internal control environment was improved through the introduction of formal policies and authority limits.