Case Study #1 – Transport and Logistics client – a turnaround journey

Last year we worked together with a Transport and Logistics company based in the West Midlands, like so many companies in that niche they were facing the “Cauldren of costs” that has so impacted that sector, to give you an idea of the issues that niche faces, there are around 45,000 less UK HGV  driver licence holders than jobs which has led to the sector becoming dependent on Eastern European drivers.

When you then consider how Brexit has played out, and that the exchange rate between many Eastern European counties and the Euro and Sterling has made working in Germany more attractive you start to appreciate the scale of the challenges that niche faces.

Then to add to that there are the recent :-

• Living wage increases.
• Auto enrolment % uplifts.
• Apprentice levy introduction.
• Business rate increases.
• Price hikes to Diesel.

Another major factor in this case study is the unemployment rate which in the West Midlands is running at less than 4%, transport businesses typically recruit from within a five miles radius of each depot, so the supply of local drivers is very low and due to the need for a HGV licence there are barriers to entry within that employment market.

Rival companies are constantly poaching drivers and in order to retain them pay has to be increased on a regional basis often several times per year.   When you consider that many competitors are floated on the stock market but still losing money heavily, but with the ability at least in the short term to raise additional funds, you can see that it is easy to understand that the directors of transport companies feel between a rock and a hard place.

So not surprisingly our client was facing a real squeeze.  The challenge was to help them model the business to support a fund raising exercise, given the challenge there was also an added urgency in that the cash flow forecast showed a pinch point at the end of the year.

Our team was able to field a very experienced Finance Director who worked with our client 3 days per week producing a model and supporting the in-house Finance team.  We are pleased to report that the project was a success the model allowed funding to be found/released and the business was able to move onwards.  We were also able to introduce a great finance broker to the client, one which we know and trust and has been part of Lloyds and Barclays distressed lending team in the past, working with our FD they were able to put in place the necessary model, business turnaround plan and convince the bank concerned to take the change on what has been a previously very successful business, and still can be.

We were also able to share our experience of other players in this competitive niche who have moved to embrace the pallet network concept whereby operators share costs and each others networks, greatly reducing and transforming costs in some instances.  Many loss making transport companies have been able to move back to profit by adapting in this way.  We have similar case studies we can share.

Case study

Our client was happy to share this quote with us.

“I can’t thank FD Capital enough for the help and support given, a really high quality flexible and knowledgeable FD was provided with just the skills we needed and at short notice, certain now that using your outfit was the 100% right approach for us to take.  Their knowledge of our sector was a real eye opener to us”

If your business operates in the Transport and Logistics sectors and you need the help of an interim, portfolio or permanent FD then reach out to us, we have an active team of FD’s and a national network to support us.  This case study is a good example.

To get an understanding of the areas FD Capital covers please review the following pages to see the disciplines currently on offer and read this and our other case study:-

• Part Time FD’s – This is our main focus covering the London and West Midlands areas.
• Portfolio FD’s – Part Time FD’s who work for multiple businesses.
• Private Equity FD’s – Finance Directors with experience of working with Private Equity Houses and Venture Capitalists.
• Interim FD’s – Finance Directors needed for short periods.
• Turnaround FD’s – Finance Directors with particular experience of distressed situations and turnarounds.
• E-Commerce FD – Finance Directors with expertise with E-Commerce website and Search marketing.
• Non-Executive FD – Non Executives or NED’s with finance expertise for boards.

Most of our Finance Directors are ICAEW qualified accountants.

Some further information is included below relating to specific areas where members of our team operate from or are based out of.

Telford Finance Director – located in Shropshire an ideal location for Telford and Shrewsbury based clients.

Shropshire Finance Director – A very experienced FD with 20 years of debt and equity funding experience immediately available.

Wolverhampton Finance Director – Highly experienced team members who can cover the wolves area.

Birmingham Finance Director – based in our second city team members ideally located to service the Birmingham and nearby areas.

Manchester Finance Director – We now offer FD’s and CFO’s in the Manchester area and up to Preston in Lancashire.

Leeds Finance Director – We now offer FD’s and CFO’s in the Leeds area.

London Finance Director – We have a number of talented experienced FCA’s living and working in London ideal for your business.

If your business is in need of a FD turnaround specialist, then reach out to our team today.

About FD Capital Recruitment – your Finance Director and CFO specialists.

Formed in 2018 FD Capital Recruitment was founded with the objective of becoming a leading provider of Part-Time Finance Directors, our idea being to bring the skills and experience that finance directors have gained in larger corporates and plc’s and make them available to SME’s on fractional time basis.   We have grown and grown and had our busiest year so far in 2020 with some of our team working six days per week.  See also our other case study where our team have made a real difference.

About us

We operate across the London and south east and West Midlands areas, our ambition is to grow the business to a national operation.  Our team is made up of finance professional and experienced recruiters who between them have an extensive network of FD’s and CEO with a strong database of companies we have connections within.

Our FD’s are currently based in North London, South London, Crawley, Northampton, Birmingham and Telford, so we can provide coverage from South Cheshire down to Brighton on the South Coast.

Adrian Lawrence

Adrian Lawrence FCA with over 25 years of experience as a finance leader and a Chartered Accountant,  BSc graduate from Queen Mary College, University of London.

I help my clients achieve their growth and success goals by delivering value and results in areas such as Financial Modelling, Finance Raising, M&A, Due Diligence, cash flow management, and reporting. I am passionate about supporting SMEs and entrepreneurs with reliable and professional Chief Financial Officer or Finance Director services.