Client Successes - Case Study Nine

Project: Company Turnaround – packaging

Background Issue

A £20m packaging group, established through a Management Buy-In, had very quickly broken its banking covenants. At the request of the bank, a professional team was introduced in order to see if the situation could be quickly turned around.

Firth Interim Management input

Within the first month, Stuart Firth reviewed the operations of six separate sites and assessed the directors, shareholders and key managers. Options were outlined and continuing bank and creditor support was gained in order to allow remedial action.

Acting as interim chief executive, a turnaround plan was then put into action prior to a longer-term solution. This included major price increases (up to 40%), headcount reduction (30%) and productivity improvements (12%).

A structured break-up of the group was then initiated.

Results

Following a five-month intensive rescue programme, the bank was better positioned to fully recover its investment.

Endorsements

“Thank you for your tremendous support… …we could not have got so far without that…” “…Barclays Bank were very pleased with the work carried out…”

Bill Speirs, Chairman, ProTurn Ltd