Specialist Jewellery Manufacturer

Service(s): Interim Management
Sector: Manufacturing

A specialist and highly successful jewellery manufacturer and distributor (Revenues of £50m, 3 sites and Far East manufacturing facilities) had failed their audit and had HM Revenue & Customs (HMRC) investigations in progress. They needed to add detail to the financials to keep a disintegrating bank relationship intact. There was a serious lack of communication and clarity as to the financial state of the company, and a former company Financial Director had been suspended for gross negligence. No board member had any in-depth financial experience, but an IBR supported the company.

During this 8 month assignment, FRP Transition introduced a senior Transition Finance Director (FD) with substantial industry experience, and a solid Transition Finance Controller to aid the FD with the day to day running of the business. Another audit was conducted and completed successfully.

The HMRC (VAT) issues all were all concluded with no further penalties to the company. Invoice Discounting (ID) was introduced to improve working capital with support from the bank, and their outstanding debt to the bank was significantly resolved, which decreased their exposure.