Consulting

In March 2017, a plastics moulding operation in Camberley, Surrey, faced significant challenges following its acquisition from administrators. The company struggled with cash flow issues due to lower-than-expected sales and higher direct costs stemming from delays in integrating two businesses under the same ownership. The anticipated synergies from this integration did not materialize, leading to increased manufacturing times and costs, as the diverse customer base required a greater variety of moulds, which was not adequately reflected in the pricing model. To address these issues, the company sought assistance from Opus, which recommended entering an Administration process to safeguard the business and its assets. The Opus team, led by Steve Parker and Trevor Binyon, formulated a strategy for a pre-pack sale while managing the day-to-day operations. They conducted a thorough review of the companys financial and operational performance, engaged with key stakeholders, and initiated a marketing campaign to attract potential buyers. Despite initial interest, a proposed buyer withdrew just before the sale deadline, putting the companys continuity at risk. In response, the Opus team quickly renegotiated with existing lenders, scaled back management and production headcount, and secured interim contributions from the top five customers to cover overhead and production costs. This proactive approach allowed the company to maintain operations while customers sought alternative manufacturers, ensuring no disruption in supply chains. During the three months of trading under administration, the company generated a turnover of £1.45 million and a net profit before tax of approximately £600,000, significantly exceeding initial projections. The successful management of the situation enabled the repayment of £1.6 million to the principal funder within nine business days, with all secured lenders receiving full payment and unsecured creditors expected to receive a dividend of 10-15 pence in the pound, a substantial improvement from the anticipated zero return. The Opus teams strategic intervention not only preserved the business but also supported the local community, as the company was a significant employer in the area.