Helping a client boost sales and client wins through Board Support
Whilst the impact of the recession caused heightened competition and a squeeze on profit margins, for one of our clients – product, retail and graphic display solutions provider Daytona Visual – a business restructuring opportunity was identified which led to the achievement of increased profits and the securing of blue-chip companies Pirelli tyres and Virgin Atlantic.
Operating in a highly competitive market and with the technological developments in digital print, the industry is subject to de-skilling of the work and eroding margins. By working closely with Daytona Visual as part of our Board Support service, we identified areas where the profit margins were being squeezed the most and recommended a strategy change from a pure print to a manufacturing company supplying high end, durable point of sale; giving us the great benefit of higher margins on the manufacture and repeat orders to change the print displays.
Daytona’s managing director Andy Wassall explained: “This change required a refinancing of the business. The aim was to re-mortgage the company factory and re-negotiate the confidential invoice financing facility, but our incumbent bank, RBS, declined, so Adams Moore got to work on a detailed business plan, accurate forecasts and a put together a compelling business case. After months of hard work we switched bank and achieved reduced monthly mortgage repayments, accessed additional funding and negotiated a new invoice finance facility that releases working capital sooner and is cheaper for the business.”
Daytona used some of the funding to invest in new machinery, re-organised its factory and safeguarded jobs and now manufactures point of sale. The whole process was completed within six months and Daytona is thriving with its new business plan and course.
Andy added: “Adams Moore’s Board Support package is a breath of fresh air -they take a very proactive role rather than the traditional accounting we had been used to previously which was generally reactive, and so often too little too late. Our company has benefitted greatly from the expert knowledge in business planning and forecasting from Adams Moore– as well as dealing proactively with the banks on our behalf. These are all areas where we felt we didn’t have the required specialist knowledge. Our business is going from strength to strength under the new model and sales are improving with a range of new products and further investment for the future now a viable option.”
Daytona is a great example of how a company can completely change its strategy and business model to turn fortunes around in difficult economic times. It’s been great to work with them on a project such as this and see the results of all the hard work come to fruition with direct impact on the bottom line.