Air Transport Case Study

Company RecoveryLink recommended Ian Munro for this consultancy role which ran on a one to two day a week basis from February 2000 - February 2003. The purpose was to advise the board and help this unprofitable company with a positive exit plan.


Company profile:
Air transport, warehouse and distribution company
Turnover: £6m
EBITDA: Not profitable

The problem:

Convert losses into profits and create a positive exit strategy for the owners.

The issues:

  • Too many low margin customers
  • No succession management and owners ready to retire
  • Unprofitable distribution business draining cash
  • Over reliance on spot work and few long-term contracts

The actions:
  • Closed distribution business
  • Negotiated major long term contract
  • Short term “spot” work
  • Reduced overhead structure
  • Contracted out fleet maintenance
  • Overhead base still too high so structured a business closure via a CVA

The results:
  • Sold two properties releasing funds for creditor settlement
  • All creditors paid 100p in the £
  • Cash balance produced retirement fund for owners

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