Due to the CoVid-19 shutdown the company was facing a cash crunch. Prompt was appointed by the directors to help find a funding solution to ease the impending issues and allow a structured reopening of sites.
A detailed business plan and forward strategy was to develop to manage creditor overhang from when the construction sites stopped and slows down due to the impact of CoViD-19. The plan also covered the challenge of obtaining performance security bonds.
The company was successful in securing a revolving credit facility of £4m enabling the orderly restart of building projects and protect the significant workforce.
“Our company utilised the support of the Prompt team to help us apply for CLIBLS revolving credit facility (RCF) in order to safeguard our business from the impact of Covid-19 on the economy. Prompt had been recommended to ourselves from another professional consultancy that we use and they helped guide us through the complex process in which to obtain a large RCF loan. Prompt not only provided clarity on the task in how to put forward a robust loan application but they also helped instil confidence to our bank from the in-depth proposal they helped us compile. As a Director of our business I would highly recommend there technical support to any company that required their expertise.”
“Prompt really got under the skin of the business and simplified a complex situation into a clear operational improvement strategy which underpinned our investment in the Group. We have continued to work with them post acquisition to improve cash flow reporting and monitor progress against plan. “
Carve out from Group and investment of Procam, Europe’s largest digital cinematography and hire facility.
Prompt worked closely with the Senior Management Team of Procam to carve-out of Procam’s UK and US branches, 'Procam Projects' and 'Take 2 Films'. Broadcast and cine lens innovators 'True Lens Services' is not included in the transaction and will remain part of Foresight Group.
Despite the global pandemic Prompt was able to develop a robust business plan resulting in securing new investment from
In Spirit Capital. Prompts role was described as key to the successful creation of the new business plan leading to the investment from In Spirit Capital.
About Procam (www.procam.tv):
Procam is Europe’s largest digital cinematography and hire facility.
For over 30 years they have supplied production equipment to
industry professionals throughout the United Kingdom and internationally. With offices in London, Manchester, Edinburgh, Glasgow and New York their services include equipment and crew rental, project management, workflow consultancy and
24/7 technical support.
Also part of the Procam Group are
Procam NY (www.procamny.com),
Procam Projects (www.procamprojects.com),
and Take 2 Films (www.take2films.co.uk).
(turnover £45m )
The Group’s sales focus was pubs, restaurants and education establishments supplying schools and colleges. CoVid-19 significantly impacted sales as the core customer activity dramatically reduced.
The Directors could see a way to switch the sales
focus on to home delivery utilising its core facilities, pick & pack and van deliveries. A new website was launched with marketing through social media.
Prompt worked closely to help underpin the viability of the new plan and give the Group’s bank confidence that both the strategy was viable and could be profitable. There were a number of challenges to overcome including an aging debtor book which was funded from an invoice discount facility. In a matter of weeks the Group was performing well and as the lock-down eased and elements of their original business to pubs, restaurants and schools returned they continued to improve performance.
The quick reaction and resilience of the Directors were a key element to the successful recovery of the Group.
"We were recommended to Prompt by our bank during the COVID-19 outbreak to help write and present detailed 4 year financial forecasts in order to submit a CBILS loan application.
Throughout the process David and his team took time to understand the business and provide useful guidance and advice with deals with the bank’s requirements. Their level of technical knowledge in developing integrated financial forecasts were invaluable and reduced the time taken to complete the application. They also provided clarity, reassurance and an objective viewpoint for the discussions with the bank.
It felt that Prompt had a genuine interest in the business and the management team and even after the loan application had been submitted and approved, still continue to stay in contact with the business to check on progress.
I would recommend Prompt to any business who need some external expertise and “another pair of hands” when writing and developing complex and technical business models."
Head of Finance.
"At the start of the first national lockdown in the Spring of 2020 I was introduced to Prompt by a national firm of accountants acting on behalf of our bankers.
Over the following nine months David and his team worked with the business to safeguard appropriate funding levels with our bankers, while at the same time developing complex financial models to support a refinancing that finally completed in January 2021.
During that nine month period, the Prompt team developed a deep understanding of not just our financials of the business, but of the people within it, and this was a key factor in securing the long term financial future of the business. Bearing in mind the difficult circumstances surrounding their appointment, they were a pleasure to deal with, and I would not hesitate to recommend them.
Supplier to Building Sector
One of the largest PVCu – Double glazing fabricators located in the Southeast of England encountered trading issues which put significant strain on the working capital. The position was made worse due to CoViD and its impact on the construction supply chain.
The Group has four core divisions:
New Build / Commercial / Retail / Trade, all of which were impacted through the various lockdowns in 2020.
A strategy was adopted by the Group to drive production efficiencies and reduced overheads whilst ensuring both product and service quality were maintained. Within months the turnaround strategy adopted was delivering both profit and associated working capital. The existing bank was keen to exit the business, so a key part of Prompt’s role was one of “stakeholder management” to ensure the Group was given sufficient time to deliver the business turnaround and secure the right funding to take the Group forward. Within nine months both objectives were delivered: the business turned around, profitable and business
Frozen Food Storage and Transportation
Due to rapid growth and an expansion in activities the company needed a loan to plug a cash shortfall it was suffering.
Prompt was engaged by the board to review the cash plan the company were putting together.
Our report provided the detail and information for the company to achieve a successful application and presented scenarios to the board and lender showing likely outcomes based on various assumptions.
The historic R&D activities of the company had been funded out of cash flow and no planned financing strategy was being undertaken by the company, so working capital was highly stressed.
Prompt was appointed by the board through a referral from the working capital provider.
We put together detailed cash reporting and forecasting to allow the directors to understand the position of the business and embark on a two pronged financing strategy and resize of the business.
The directors reduced the overhead base of the business and rationalised the project cost base to ensure it was able to reduce the cash burn, whilst simultaneously seeking additional working capital funding of £2m and longer term investment of £20m to fund and accelerate the future R&D activities.
"The executive team wanted to bolster and streamline their financial operations and overall governance so that it is well positioned for future growth, and were introduced to Prompt.
During their time with us they have introduced an enhanced and more detailed financial reporting structure through cashflow and forecast tools which are now being undertaken by our internal finance team while Prompt maintain a reviewing watch over this. They also undertook the position of finance manager following the retirement of our previous FD which enabled us to perform a steady recruitment process. Prompt have also been closely involved in advising us on the business strategy (which is closely linked to the forecast work) while helping us manage our stakeholders.
The whole process has been very smooth and Prompt have been extremely professional throughout, while maintaining the business’ best interests at all times. Their level of knowledge and know-how has been pivotal and the directors are of the belief that the business is in a stronger position now to go forward and secure growth capital for the international development plans."
Kishore Sankla CEO
PROMPT were recommended to us by a national firm of accountants to undertake the detailed financial modelling exercise as part of our submission to refinance due to the impact caused by the recent Covid pandemic.
PROMPT aided the company and directors during the process by working closely with our in-house finance team to build the tools to enable a considered finance application to be made. They readily understood the financial complexities of a complicated diverse group and were clear and considered in their approach.
Prompt are efficient and a delight to work with. I have no hesitation in recommending
Nigel Godefroy CEO
Agricultural & Garden Supplies
Prompt was approached by the board to help bolster the cash flows and forecast reporting in order for the business to apply for the CBILS loan.
The company had seen a downturn in revenues due to the coronavirus pandemic and were forecasting further reductions and a cash squeeze.
We implemented further detail and rigour which enhanced the financial reporting to allow an understanding of the numbers by the bank.
The company was successful in their application.
Independent Senior & Junior School
One of the leading independent schools in the South West was referred to us after suffering years of poor financial reporting.
A new management team had just been put in place and together we introduced strong financial and operational reporting which has allowed the school to unlock c£1m of financing from additional donations along with the release of historic monies which had not been utilised within the group structure. Alongside this we carried out a major rationalisation of the cost base to put the school in a much stronger position to go forward.