Manufacturer and Distributor

Manufacturer and purchaser of plumbing fittings sourced from and sold around the world came under increasing cash prressures due to a combination of short term losses, currency movements and deteriorating working capital position culminating in a £1m cash hole. Further loss of two customers comprising 20% of turnover led to immense pressure from the Group’s bankers.

• Re-costed BOMs of 10,000 products
• Implemented factory weekly P&L – identified UK manufacture brass fittings more cost effective than sourcing from China
• Replaced batch manufacturing with “just in time”
• Identified glitches in MRP system – including large one off sales
• Developed customer product profitability reports to incorporate all costs
• Strategically refocused on sales to UK Independents – higher margins
• Strategically focussed on regaining higher margin sales of “specials”
• Reorganised sales function – individual targets, telesales, internet sales

Presented the above in a three year plan which was supported by the bank with the result that the owner is now seeking a trade sale of a profitable business with a considerably enhanced value.