Dyke Yaxley recently assisted a client to obtain finance from their bank, when previously the manager had turned down the request for additional funds
Mark Bramall of Dyke Yaxley has completed a fundraising assignment for a client in the plastics' manufacturing sector, who was until recently suffering a £80k per month loss, and is now averaging a monthly profit of £50k.
During this period of uncertainty, a ‘turnaround consultant' had attempted to prepare projections and approach banks for additional finance, but had not been at all successful. Therefore Dyke Yaxley, the company's accountants and members of The Corporate Finance Network became involved in discussing the situation with the business, and liaised with the bank to understand the reason for the refusal to lend further monies.
When the bank's true position was understood, Mark Bramall of Dyke Yaxley was able to assist the company to prepare financial projections with detailed and reasonable assumptions, and then re-approached the bank with a proposal for further funds. An agreement was reached to allow the company to borrow an additional £100,000, which was required in order to purchase more machinery. The working capital facility also remained intact.
The business has now made several changes including reorganising its sales team, implementing an accurate job costing system in the production department, winning new work from old customers, and is also receiving accurate management information. It has been rewarded by this staggering turnaround, and is now going from strength to strength.
