Turnaround Finance: INFORMATION STORAGE AND SERVICES PROVIDER

BUSINESS TYPE:	INFORMATION STORAGE AND SERVICES PROVIDER
LOCATION:	THATCHAM, NEWBURY
RESTRUCTURING AND NEW INVESTMENT:	SUCCESSFULLY COMPLETED AND INVESTMENT ONGOING

From an introduction through Lloyds TSB we met and were engaged by this client to seek the investment of working capital following the severe slippage of a large contract won as a result of their strategic alliance with a major telecoms supplier.

We immediately recommended that the company enter a CVA (Company Voluntary Arrangement) to give it some protection from it’s creditors who were threatening to wind the company up. The CVA was duly prepared by us and 100% support was received from the creditors for the arrangement. This has enabled the company to survive and put in place the major contract which is now running satisfactorily and has also provided the time for us to seek the necessary investment. We are currently in advanced discussions with an investor who has both the financial and management resources to help drive this company forward to a profitable exit in a few years time, due to his experience in building up and selling a company in a similar field.

We were recommended by our bank to engage the services of Beer & Young Ltd to seek the investment we required to save our business. Beer & Young quickly identified that our more immediate need was to obtain some protection from our creditors before investment and we duly entered into a CVA (Company Voluntary Arrangement) which has given us 5 years to clear up this problem and has left a cleaner situation for potential investors.
As a result of the actions taken by Beer & Young we are now trading profitably, have retained all our clients and suppliers and are in advanced discussions with an investor. It is certainly true to say that without the intervention of Beer & Young Ltd our business would have failed, whereas now we are able to be positive and look forward to building the company prior to a profitable exit for all concerned in a few years time.'DJ, Financial Director