This case was an UPVC and aluminium system manufacturer and distributor supplying windows, doors and conservatories to the trade. The business had sales of £15m but a run rate of losses of £1 million per annum. The company’s banker was considering calling in the banking facilities.
An assessment of the competitive position of the company in its market segments was undertaken which together with an activity based costing approach to product and segment contributions lead to a refocused market strategy. The conservatory segment was exited and marketing strengthened to enable the company to integrate into its customers marketing and sales efforts, thereby increasing sales to the end user. The repositioning of the business required a re-
A detailed implementation plan and associated financial projections were prepared to realise the benefits of the turnaround strategy.
The turnaround strategy, route map and financial projections were presented to the company’s banker. The facilities were increased by £250k to support the turnaround.
The annual reported loss of £600k was converted to a profit in the following year of £300k as the refocus market strategy improved contributions.
The business was sold shortly thereafter, shareholder value having been increased by £2.5 million since the start of the turnaround.
Nature of Support
Case Details: £15 million UPVC and Aluminium Manufacturer