Eric Bates is a £2 million furniture manufacturer who had experienced reduced profitability and was constantly up against its overdraft limit.

They sought advice from WLP on the way forward.

What we did:

We carried out a review, working closely with Graham (pictured with Martin) and Jamie Bates.  We produced an action plan and a business plan and helped them understand:

• That their choice of supervisors could be improved.
• They did not have enough accounting input in the business.
• The value of management information and how to obtain it from their systems.
• Showed them how to produce a margin and profit forecast from the model.
• Their space could be sublet.

Results:

• They have management information from their accounts that enables them to identify issues and take action.
• The information is easily obtained monthly.
• Have costed all their products, know the hourly cost and know their margins.
• They are expanding their markets (kitchens) and reduced their stock.
• They have a monthly Board meeting to determine action.

They now have an additional rental income of £50,000 and are making a profit.