Client Successes - Case Study One

Project: Company turnaround - holographic technologies organisation

Background issue

A £10m UK business, engaged in anti-counterfeiting activities based on holographic technologies, had grown by acquisition but its parent had found it difficult to fully capitalise on its purchases. Consequently it found itself in a serious long-term loss-making situation and the UK operation was under threat of closure.

Firth Interim Management input

Within 20 working days of being appointed as interim managing director , Stuart Firth submitted a rescue plan which was approved by the main board. The business was refocused on profitable markets and products, and unprofitable areas were exited; non-core customers were divested via a trade sale to provide a sizeable future income.

The senior management team was streamlined and the headcount reduced from 124 to 83; cost savings in excess of £1m per annum were achieved. Two factories were consolidated onto a single site whose workflow and environment were simultaneously reconfigured and upgraded within 100 working days; continuity of production was maintained throughout.

The internal sales function was relocated from a third remote site; communications, quality and customer service were all improved giving significant financial benefit. The sale of surplus site, equipment and technology transfer gave a one-off cash benefit in excess of £1m and future annual sales of £500k.

Results

The reconfigured business will be profitable in its first year having shown losses in excess of £2m for the previous four years. At the end of the assignment, the company had already outperformed budget and its FTSE share price had increased from 19½p to 42p over the relevant period.

Endorsements

".there were a lot of moving parts..." ".the implementation of the restructuring exceeded all expectations." ". I would not hesitate to hire Stuart again."

Mark Turnage, CEO, Applied Optical Technologies plc