Growth strategy brings operational strain
After the group requested additional financial support, its lender engaged FRP to assess the business. We worked quickly with management to review short-term cash requirements and determine the scale and timing of the funding gap. The lender agreed to a temporary increase in facilities and capital repayment holiday to ease pressure. FRP then supported management in enhancing both short- and long-term forecasting models, providing greater visibility over financial performance and business viability. We also assisted in securing a Time-to-Pay arrangement with HMRC to alleviate immediate cash pressure. Immediate support and financial forecasting
During our review, gaps in the management team’s capacity and experience were identified, leading to the introduction of an interim director to help steer the business through a refinance process. With improved forecasting and operational oversight, the group’s short term position is now stabilised, and the lender continues to waive covenant breaches while a controlled refinance progresses. FRP remains closely involved, coordinating with directors, lenders, the interim director, and debt advisers to ensure continued progress and a long-term funding solution. Strengthening leadership and supporting refinance
The group specialises in the supply of workshop equipment. Following a bank- backed management buyout, the group pursued a growth strategy, completing two acquisitions and expanding its product range. This rapid expansion in combination with extended supply chain lead times led to covenant breaches and highlighted a forecast shortfall in working capital funding.
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