How our Board Support service helped a local business refinance and restructure
Our Board Support service, which offers owner-managed businesses a higher level of support, holds many benefits for businesses that need more than just accountancy services such as payroll or end of year accounts. Our Board Support clients all value the extra features of the service, and in the case of local graphic display specialist Daytona Visual, the service was invaluable in helping them refinance to restructure. This has not only put them back on the road to success in a highly competitive arena, but also has enabled them to secure two blue-chip clients; Pirelli tyres and Virgin Atlantic.
Whilst the impact of the recession has caused heightened competition and a squeeze on profit margins, working with Daytona through Board Support we identified a business restructuring opportunity for the company which has led to the achievement of increased profits.
Daytona managing director Andy Wassall explains: “We operate 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 Adams Moore, as part of their Board Support service, they 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.
“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 have now 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 is now thriving with its new business plan and course. The whole process was completed by Adams Moore within six months.
Andy added: “We have been on Adams Moore’s Board Support package for around five years and they’ve been a breath of fresh air, taking a very proactive role rather than the traditional accounting we had been used to 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.”
We think 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.