Remarkable Financial Improvements for Water Treatment Specialist
This multi-disciplined industrial water and waste treatment contractor, based in Berkshire, offers a national service providing clients with a portfolio of equipment and service solutions.
The company has a young management team and a highly skilled workforce but has struggled to make significant profits despite being consistently busy.
In 2008-09, when the construction sector came under pressure, it became necessary for the company to change its bank. The new bank suggested that they should talk to Secantor with a view to helping them review their business model so as to improve profitability.
A Secantor FD joined the team on a part-time basis to advise on strategic directions and, in addition, a Secantor support expert reviewed the company’s management information system.
It was suggested by the Secantor FD that the management team should consider creating three semi-autonomous divisions to focus on the different aspects of their business. Regular management accounts and KPIs were established to aid decision making as part of structured monthly Board meetings. A business plan and a detailed financial forecasting model was prepared, which provided goals and accountability measures for key players and a set of comparatives for MI.
A Secantor IT executive advised the company on the implementation of a new system.
The management team quickly embraced the strategy recommended to them and the company was restructured with clear lines of responsibility and reporting. Profitability increased almost immediately and the first year under the new business model resulted in a bottom-line result that was many times the previous best. The client is now set for further growth and the value of the business is greatly enhanced.