A long established two partner professional practice had been making healthy profits for a number of years and was looking for straightforward ways to reduce the tax burden. On our advice they incorporated the partnership business into a Limited Company resulting in a one off tax saving of £35,000 and, in the first two years, average annual savings of over £9,000 pa.
A small company moved into new premises and claimed all the allowances they thought that they were entitled to in fitting out and equipping their new trading address. Following a review by specialist Capital Allowances advisers a further £58,000 of allowances were identified that could be claimed resulting in a tax saving of over £23,000.
Looking to sell their premises and rent new ones we pointed out to our client that, in his circumstances, the structure of the transaction could be critical. Once the deal was agreed in principle we looked at it in more detail and advised that, specifically, the property needed to be sold before a certain date. Doing this would save the company around £20,000 in tax.
An already profitable client was looking to expand their business but was unsure how to track and control this. We undertook a review of the information available to the directors and, with their agreement, put in place systems for regular quarterly reporting together with analysis and commentary of the company’s performance (and specific business growth ideas). The directors now have confidence in the financial information that they receive and are able to use this to concentrate on increasing revenue and profits. Within the first year of the new reporting system and our advicesales have increased by nearly 34% over two years.
This well established company had seen both expansion and contraction and had reached the point where the two directors had different priorities and wanted different things from the business. We successfully negotiated a de-merger of the business with each director getting what they wanted out of the business. We then worked with the remaining director to identify his strategy for the business and come up with an action plan to achieve that. Since focussing on the new strategy and the necessary actions the company has increased profits by over 200%.
This long established business operated in a mature sector and had reached a ceiling in its sales which were primarily derived from the owner/manager’s work. We reviewed the marketplace and, having identified the owners’ personal and then business goals, produced an appropriate course of action to achieve those goals. The company has now moved away from the ‘traditional’ business having identified more sustainable and profitable areas and is expanding its workforce to ensure that sales are not entirely dependent on a single individual.
When this client’s sales increased consistently by 50% month on month over the previous year he was concerned that, contrary to his expectations, he was experiencing significant cashflow problems. The detailed monthly management information that we were already giving him, together with assistance in projecting cashflows forward, gave him the reassurance that he was on the right track, even if cash was temporarily tight.
A highly seasonal business experiences difficulties with cash flow during the ‘low’ season. The cashflow projections that we prepare give the company’s bank sufficient reassurance to provide the necessary funds because they can see that the mid-year squeeze on cash is a temporary issue that will be resolved once the season arrives and the already committed sales are delivered.
Two directors with very specialised technical skills started this company three years ago. With our help providing regular management information and general business advice and assistance the company has trebled its turnover year on year, obtained additional funding as needed and is anticipating turnover reaching £1m within two years.
This new business had identified a niche in its market and was looking to exploit that. Although it anticipated being profitable from Day1, raising the finance for the initial start up costs was proving an issue. With our help in preparing formal profit and cashflow projections the bank were willing to provide finance and the business was able to start trading.
This company had suffered the loss of a significant contract and was making losses. We reviewed the business’ reporting systems and identified the information that the directors needed and how frequently. This significantly improved reporting, along with our regular advice, has enabled the directors to focus on the important aspects of the business resulting in the introduction of new products and services. These have generated additional profits and the company has turned around.
The company was looking for help in succession planning. We identified and reviewed with the directors all of the possible scenarios and, as a result of these discussions, we were able to identify a potential acquirer. He both purchased the business from the shareholders and also enabled them to continue delivering their unique business positioning, the ideal result for the directors and shareholders.
This client was becoming increasingly reliant on a diminishing number of specialist suppliersand was already experiencing raw material price inflation with the likelihood of this getting worse. We assisted in identifying a potential target, checked out that company’s background and finances and came up with a suitable plan for acquisition. The target company was acquired, we continue to monitor it to ensure costs are controlled and our client has a secure source of supply at a reduced cost.
Due partly to this company’s geographical split one of the directors was working excessive hours and not able to take any holiday. We identified with this director his goals, both business and personal, and worked with him creating an action plan and reviewing progress against this. In the first year of this exercise the company grew turnover by just under 50% and, in the second year, it is seeking to double its profits. In spite of this the director has reduced his working hours and is taking holidays.