A rapidly growing high Tec Navigation Company, required assistance in managing extremely tight cash flow as a result of delays in launch of upgraded product range. The role involved working closely with the finance director to revise and update the business model and cash flow forecast and present this to the board and the company’s funders to secure the necessary additional support. The successful outcome was that the funding was secured from a combination of sources including bankers, equity funders and creditors. I subsequently oversaw the implementation of the business plan and cash flow with on-going weekly monitoring and review exercise as part of the agreed funding package which was phased out as the plan moved further into its successful implementation.
In its first three years the company had developed a range of high end hand held satellite navigation systems for use by cyclists, walkers and military special forces.
The company had grown rapidly but required on-going high investment in R&D to keep pace with the rapidly changing market it was operating in.
My initial involvement was in working closely with the finance director to revise and update the original business model and cash flow forecast and present this to the board and the company’s funders to secure the necessary additional support. The critique of the existing detailed forecasting package, working with the FD and its regular review was a key element of my involvement throughout the engagement.
The directors were very aware of their overriding fiduciary duty to ensure they were not trading insolvently and I was required to provide a regular independent confirmation of this together with a critique of the boards plans to ensure there was no possibility of fraudulent or wrongful trading.
This advice was a crucial part of the turnaround strategy throughout my involvement as it gave the directors the clarity, confidence and ability to continue to implement their strategy over a significant period of time.
I was retained to provide on-going consultancy and support over the period of engagement. I was intensively involved on a number of occasions, particularly when a further round of cost cutting was required and when a second round of fund raising was being secured.
The successful outcome was that the funding was secured from a combination of sources including bankers, equity funders and creditors.