Consulting

In March 2017, a plastics moulding operation in Camberley, Surrey, was acquired from administrators, aiming to integrate it with a pre-existing business to drive revenues and reduce costs. However, from February to July 2018, the company faced significant challenges, including lower-than-expected sales and higher direct costs due to integration delays. This resulted in cash flow difficulties, leading the Director to seek advice from Opus to safeguard the business and its assets. Opus conducted a thorough review and determined that entering Administration was necessary. They formulated a strategy for a pre-pack sale, which involved valuing the business and conducting a marketing exercise to attract potential buyers. Despite initial interest, a proposed buyer withdrew just before the completion deadline, putting the business at risk. In response, Opus 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 replacement manufacturers. Under the control of the Administrators, the business continued trading for three months, generating a turnover of £1.45 million and a net profit before tax of approximately £600,000. The initial plan to trade for eight weeks was extended by four weeks, allowing for the completion of customer orders. The strategy also enabled the repayment of £1.6 million to the principal funder within nine business days, with full payments made to all secured lenders and an anticipated surplus of over £250,000 to be distributed to unsecured creditors, who initially expected no return. Throughout this process, the management team demonstrated strong engagement, which was crucial to the successful execution of the strategy. The company, a significant local employer, also fostered a supportive environment for its employees, who expressed gratitude for the Opus teams sensitive handling of the situation. This case exemplifies how strategic intervention and stakeholder collaboration can lead to a favorable outcome even in challenging circumstances.