FDYL success stories

To see how we have helped our clients in the following situations,
click on the headings below.

HELPING THE MD MAKE MORE PROFITABLE USE OF HIS TIME - ELECTRONICS MANUFACTURER

Initial characteristics:
MD was spending 50% of time on administration and routine financial management. As a result he was neglecting customers, key suppliers & product development

FDYL solution:

Helped MD delegate routine tasks

Developed integrated forecasting model - focused on the profitability of individual products/product groups

Trained management to update forecast model regularly.

The MD gained a regular respected sounding board, was able to take a step back to assess product profitability and re-establish much needed customer contact.

FUNDRAISING IN DIFFICULT CIRCUMSTANCES - IMPORTER/MANUFACTURER

Initial characteristics:
Established business spotted a niche opportunity that would replace its low margin sales with new product sales into new markets. Experiencing difficulty raising finance (in view of risks involved).

FDYL solution:

Helped board reduce many business opportunities to manageable plan

Helped raise additional equity and aided owner addressed issues of dilution of shares.

Obtained new import finance, asset finance and overdraft with bank

During a difficult transition period, we helped the board identify and act on the key issues required by funders to finance a fundamental shift in business activity.

MAXIMISING EXIT VALUE - SOFTWARE COMPANY

Initial characteristics:
MD believed that existing staff were too junior to provide reliable financial information to support request for additional funding. In addition, he needed crucial support on tactics and strategy during negotiations.

FDYL solution:

Developed reporting to highlight profitability of individual products

Trained company's staff to produce most financial information. Reduced FDYL involvement to strategic/supervisory roles.

Showed business had strong financial management, allowing Bank to double overdraft facility

Newly established financial systems provided the confidence to expand the profitable areas of the business, significantly increasing the company's value.

“FDYL provided invaluable help to me in the three year period leading up to a sale of my company. A greater awareness of product profitability enabled us to double sales, and more importantly, to treble our profits, resulting in a significant increase in the company's value.”
Mike McElroy, Dentrak Ltd.

ASSISTING NEGOTIATIONS WITH MAJOR CUSTOMERS - BUILDING COMPONENTS

Initial characteristics:
A difficult plc customer representing more than 50% of supplier's sales sought to take advantage of a minor trade dispute and escalate it to a position where the supplier might not have survived.

FDYL solution:

Helped supplier assess costs and benefits of each method of resolving the dispute

Examined real cost to supplier of concessions offered and overall impact on business

Advised on commercial tactics

By helping the supplier understand his bargaining position and what he could afford, he achieved an acceptable outcome without the need for litigation.

STRATEGIC HELP FOR BUSINESS OWNER/MD - ENGINEERING IN DEFENCE SECTOR

Initial characteristics:
MD had tried unsuccessfully to agree with colleagues which products to develop and which markets to focus on. The existing management team was technically competent but either too busy or not capable of addressing long term issues.

FDYL solution:

Helped MD delegate routine issues taking up much of his time

Raised additional invoice and asset finance to reduce short term pressures

Acted as catalyst each month to prioritise and address long term issues

Challenged customer value, product value and marketplace assumptions

“By setting time aside on a regular basis to dismantle and rebuild key assumptions, the business has secured long term contracts to improve margin, productivity and cashflow certainty. ”

FINDING OUT WHAT REALLY MAKES YOU MONEY - IT HARDWARE & SOFTWARE DESIGN, MANUFACTURE & DISTRIBUTION

Initial characteristics:
Company developed and manufactured specialist hardware & software. Low and declining net profit compared with sector average. Board had no idea which products were profitable.

FDYL solution:

Analysed existing data to calculate gross profit on each product.

Used this information to show that over 35% of the company's products and 20% of the customer base were loss-making.

Identified how outsourcing the manufacture of selected components would increase gross profit by £250,000 (15%) and treble net profit.

By helping identify which products and customers made money, the board was able to set up 3 action plans. Firstly, to outsource high cost components, next to identify products to discontinue and finally to significantly increase selected prices.

TURNING ROUND A POOR BANKING RELATIONSHIP
- PRINT SECTOR

Initial characteristics:
Faced with overstated stocks and profits and a lack of regular management information, the bank was on verge of losing confidence in management. Overdraft limit being reduced by £10k per month and suppliers starting to restrict credit.

FDYL solution:

Introduced cash forecasting and encouraged regular communication with bank

Demonstrated that business was generating cash - therefore no need for bank to reduce its exposure

Negotiated formal extension of suppliers' credit

Negotiated reduction and refinancing of HP liability

By improving bank communication, forecasting and reporting, bank's confidence in customer grew and lending reduction reversed.