Project Daimler

We were introduced to the business by their funder, who instructed us initially to provide them with some thoughts on the Company’s operations and recommendations for potential improvements. There were concerns around the business’ cash position and liquidity as the directors were asking for additional lending (over and above their normal facility) on an increasingly regular basis.

Our initial findings highlighted a number of areas of concern, including difficulties in managing cashflow (demonstrated by Crown and supplier arrears and a number of high interest cashflow loans), an over-complicated forecasting model for the size of the business, and difficulties in monitoring the working capital cycle. In addition, one customer represented the majority of the debtor ledger, leading to concerns around concentration issues.

There followed a second engagement to further understand the funder’s potential exposure at the same time as understanding the business’ actual position. The position deteriorated quickly as many suppliers placed the company on stop due to the ageing of their accounts.

Working with the funder, in conjunction with management, we were able to understand the cash requirements for the business and manage the funder’s exposure whilst ensuring the business had sufficient cash available whilst a strategy was agreed.

The company was subsequently placed into Administration with Mike Kienlen taking the appointment.

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