The bank of this family manufacturing business was concerned by its lack of direction and financial control. Playfair Partnerships were asked to conduct a financial and operational review.
Although the business was not in immediate danger, its balance sheet was weak, and it lacked strategic direction. The management roles were unclear and there was little knowledge of which aspects of the business were the most profitable.
We produced up-to-date management accounts and a financial forecast. This identified that a certain part of the business was only marginally profitable and that the company should focus on higher-margin subcontracting work for regional builders.
The management team was reorganised to give clear operational responsibilities and board meetings were introduced to review business performance and make collective management and strategic decisions.
We were then appointed to introduce and manage ongoing financial control systems and provide regular detailed profit and cash reporting, including contract profitability.
Tighter financial control has contained costs, improved cashflow and significantly reduced the external audit costs. Coupled with the new focus on higher-margin work, this has created greater profits, a stronger balance sheet and better earnings for shareholders. As a consequence, the business has grown substantially and generated significant profits.
Playfair Partnerships continue to provide financial management to the business and advise the board on strategic matters.
“The team at Playfair Partnerships helped us develop a clearer strategy and management structure. They introduced robust financial systems, enabling us to manage our business more effectively. And their ongoing input is important to our success”. – Managing Director & Shareholder