Situation

• Operational crisis with unplanned CEO exit
• Highly-regulated sector (FDA, MHRA, Home Office)
• A designated Key Industry Participant in the UK's COVID response
• Increasing losses sustained for several years
• Systems and processes outdated
• Senior secured lender intervention and threat of insolvency proceedings
• Freehold real estate
• Group cash reserves almost depleted
• Passive sales and marketing - lack of customer centricity, targets and business planning
• Lack of cost accounting and business areas uncoordinated
• Long trading with relationships with key customers (pharma and medical devices)
• Risk of significant damages if business ceased
• Future growth opportunities in core and ancillary services in the UK, US and European markets unarticulated
   

Actions

• Cash consolidation and management plan implemented within 7 days
• Review of profitability and operational efficiency by service and customers, resulting in negotiated price increases, investment plans for profitable services and cessation of loss-making services
• Sales and marketing resources secured and targets introduced
• Processes and systems rationalised in advanced of technology transformation 
• Staff cost reduction and redundancy plans commenced
• Board expanded and directorships provided
   

Outcomes

• Trading restored to profitability and cash resources retained
• Business operations maintained throughout the COVID lockdown periods
• Working capital enhanced through debt management and use of asset backed lending facilities
• Secured lender refinanced and security released
• 3-year strategic business plan created, including investment for growth
• Real estate assets separated from the operating business 
• Investment secured from a private equity investor