Air Transport Case Study
Link 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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