Case Studies
Joy Retail
Joy, a fashion retailer, followed many retail businesses into administration in the 2008 credit crunch.
Renaissance were called in by shareholders following the purchase of 20 of the original 34 stores. We have assisted management of the business to implement adequate control and reporting systems, lead negotiations for the purchase of leased assets and renegotiate various bank and trade facilities.
Through relevant Management Information Systems, we have been able to ensure that the business remains positive, and even in unpredictable market conditions, to deliver acceptable profit streams. The business has a prosperous future and is now able to consider a controlled expansion of their estate during 2009 with the continuing assistance of the Renaissance team.
Justin Developments Limited
Our client specialised in building traditional character properties in the Dorset and Somerset counties.
In 2004 the company embarked upon a an expansionary growth program, and whilst this led to increased turnover, the increased infrastructure costs significantly reduced profit margins. Throughout 2007/8 our client secured various banking facilities to fund increasingly larger scale developments, however problems in the property market, coupled with a banking sector meltdown, created a drastic shortfall in the companies funding and cash flow. Renaissance were called in to assist management in attempting to resolve its funding shortfall, undertake a strategic review of its business plan and introduce more stringent reporting systems. Although significant progress was made, a decision was taken together with key stakeholders to appoint Administrators. Renaissance led this process and continued to work with the Administrators to seek best value for shareholders and creditors alike.
Bandwidth Technologies Group Ltd
BTG a previously £20m 3i backed technology organisation had breached banking covenants and was on the verge of insolvency following the failure of a business unit within the Group in 2006.
· Carried out a rapid analysis and review to determine the potential future viability of the Group.
· Led negotiations for emergency support from Bankers and other creditors.
· Resolved disputes and disharmony among Board Members
· Developed survival plan and long term strategy with the Board and key team members. Developed programme to revitalize staff morale and commercial focus.
· Put together and managed project teams to implement the turnaround strategy
· Improved revenues by £800k per month in 6 months.
· Discontinued loss making ventures in month one, returned group to profit and operating within covenants in month 4, and paid off bank overdraft month 6.
· Sold business to a strategic partner in month 9.
Stratex Networks Inc.
Stratex Networks EMEA, a $100m subsidiary of a US Nasdaq quoted US Parent and a supplier of transmission technology to Mobile, Fixed and Broadband Operators. The business suffered a 70% sales collapse following the dot.com failure in early 2001.
· Developed a survival plan and funding arrangements in conjunction with the US based parent company and restructured the EMEA Sector after dot.com collapse in 2001. Major UK centred headcount reduction and 40 percent. cost savings in $8m overhead budget achieved in a 6 week project to stabilise the situation.
· Developed a new business model with investments in a decentralized multinational structure and focus on emerging markets. Recruited, trained and developed a high performance multicultural, multidiscipline team comprising 16 nationalities speaking 20 languages in 3 regional centres each with eight local sales offices.
· Invested in new data centric skills, professional service skills and quality system to support a new producer range launched in 2005.
· Achieved 40 percent sales and profit growth with 30 percent reduction in cost per sale during 2005 and 2006 as market recovered. Restored sales to original level within 4 years after dotcom failure and rebuilt cash position
· Prepared the sector for either sale or merger with a competitor in 2007
Nera ASA
Nera ASA Group, a £350m publically quoted Norwegian based international technology organisation that suffered from cash flow difficulties following the Asia Crisis in 1997/8.
· Restructured all satellite operations as part of the group refinancing project to improve profitability, cash utilization and develop a growth strategy from 1998 – 2003.
· Reviewed business unit structure and effectiveness in a 6 week analysis and review of 22 units – closed or sold 12 business units out of the 22 in a period of 12 months.
· Outsourced manufacturing units.
· Reduced headcount across the business units by 40 staff including negotiation with Norwegian unions.
· Introduced new product strategy and a programme of diversification for the business area.
Nera Ltd.
· Reorganised and developed a new strategy to turn a loss making marine electronics business into the largest supplier of marine safety systems in the UK. Created the second largest mobile satellite service provider worldwide on the Inmarsat System for both marine and land based services. Increase revenues from £8M to £35M with a profit of £2.5m in 5 years and managed the transition of the business from specialist to commodity based products.
Dowty-Case Communications
A computer and systems engineering company and Europes largest manufacturer of LAN products, Dowty-Case was a £50 million turnover division of the Dowty Group,however was unsure of its growth priorities, and commissioned a strategic review of its businesses internationally.
- Facilitated the strategic review working with teams from across the businesses.
- Orchestrated a review of positioning vis a vis competitors and benchmarking of relative
value perceived to be added to customers.
- Reached the conclusion that the division was clearly in a turnaround state-and communicated
the bad news to its senior management.
- Helped to formulate a turnaround plan.
- Helped to formulate a turnaround plan.
- Trained middle management in strategic analysis and to prioritise core
and growing business opportunities.
As a result the Division was able to conduct a programme of change which mitigated
the impact of recessionary conditions
