Profit improvement
Profile
Medium-sized B2B company, led by director/majority shareholder with a strong focus on sales.
Issue at hand
Company turnover developed significantly in the past 5 years. Profitability has remained lagging,
however. Based on a quickscan, KwikGielen identified the following weaknesses:
- Poor profitability
- Weak administrative and internal organisation, weak (financial) management
- Too limited financing of the procurement process, in particular
Solution
KwikGielen drew up a plan of approach with the following spearheads and improvement actions:
- Improvement process administrative organisation/ERP system
- Insight on margins per client and product This led to the scrapping of low-profit customers and products. A shift in focus to high-return clients and products has boosted profitability.
- Workforce shrinkage to realise cost savings
- Strengthening of management with a good financial controller
Refinancing:
- Attracting of risk-bearing capital (subordinated loan) by a government -related venture capital company
- Arranging of procurement financing
Project time
The total process required 1.5 years.
Result
Stability and continuity are restored, information provision and communication have improved. The operating result has improved significantly and high (customer) satisfaction is scored among external stakeholders.