Business Turnaround
Case Studies
Many clients value that I’m more than a vanilla coach. I’m also commercially astute, with extensive boardroom experience as a company director.
It helps because I also understand the unrelenting pressure of board-level life.
Case Study: Petroplan
The Problem
John and Graham had built Petroplan for over 30 years and had semi-retired. But they were shocked by its deteriorating financial performance:
- Debts of £12m.
- Their bank had refused to extend financing.
- Petroplan was on the point of failure.
My Engagement and How I Helped
John hired a new MD, and me as Finance Director. My finance team:
- Increased net cash by £24m within 12 months.
- Enabled Petrolpan to repay its debt in full and also have a very healthy cash balance.
- Improve profitability by:
- Focusing on higher-margin contracts.
- Reducing costs on a key contract.
The Result
Within 36 months, Petroplan’s value increased from £2m to over £20m. John and Graham were more than delighted.
Case Study: Fosters / Treasury Wine Estates (TWE)
The Problem
TWE (turnover: £180m+) was barely profitable because of intense competition and unfavourable exchange rates.
Shareholders felt the wine business was destroying the value of the Fosters beer business so it was being spun out into a separate listing on the Australian Stock Exchange by TWE.
How I Helped
I analysed TWE’s stock-holding policies and identified how to reduce its stocks and increase cash reserves. Over several board meetings, I persuaded the UK board to change its policies.
The Result
Working with the Supply Chain Manager, we reduced stock levels over six months and increased cash reserves by £21m.
This reduced the pressure on UK board. They became less worried about their job security and their relationship with the Australian owners improved.