Batemans

Background

A family owned firm of opticians with 80 outlets across the south of England from Kent to Cornwall, with its own lens manufacturing and spectacles production plant was in significant difficulty. The company, which has a distinguished history going back over 100 years, was in danger of failing.

Issues

This client was referred to Secantor in June 2005 by the bank, because the company was making year on year losses amounting to millions of pounds and the future looked bleak

Actions

• A strategic action plan was prepared to review, recommend and implement substantial improvements and modernisation to all aspects of the business
• The Secantor FD recommended a rapid restructuring of the Board and introduced new directors
• Support personnel from Secantor were brought in to analyse existing marketing and IT structures and advise on a new strategy for both areas
• A new bank was introduced providing much larger funding to invest in essential updating of optical equipment, IT systems, plant & machinery, marketing and retail design
• The large and lavish head office was sold and all central staff moved to a modern office at the factory site
• The lens manufacturing plant was also re-arranged and investment made in new technology that had a greater output, with reduced staff costs & general overheads.
• A £24m pension deficit was renegotiated and agreed with the Trustees and the Government Regulator
• A culture change to maximise commercial performance was introduced to the entire company

Outcome

• The effect was rapid with the huge losses turned into a £250k profit for first half 2006. Performance and profits continued to grow positively, rebuilding value in the business.
• Value was restored to the business ad in May 2008 the group was successfully sold to a national chain of opticians for a substantial eight-figure sum