Link put in an iterim CEO to help this company recover.
Company profile:
Telecommunications/Media
Turnover: £40m;
Employees: 60;
EBITDA losses: £2m pa
The problem:
The shareholders required rapid turnaround to cash positive position ready for sale
The issue:
During period of concentration on sales key commercial areas had been neglected requiring refocusing of business objectives following change in Board strategy
The actions:
- Reduced sales force by 50% to increase sales per salesperson
- Reduced administration head count by 10%
- Renegotiated supply contracts to improve gross margin
- Restructured product offering and price list to improve gross margin
- Reduced all other controllable operating costs
- Put key staff on cash turnaround bonus and maintained staff commitment to company
The results:
- Within 9 months the company became cash break-even
- Within 12 months the company became cash positive
- Company sold to trade purchaser
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