Company

Situation on Appointment of K2

Successful Outcome

Company

Vending Equipment Supplier
coffeeNation
Since sold to Costa and rebranded as Costa Express

Situation on Appointment of K2

  • New concept in UK to provide ground coffee from machine
  • Failure to sell any vending equipment during the four years since start-up
  • Creditor pressure
  • Great opportunity

Successful Outcome

  • Standstill agreement with creditors
  • Raised investment
  • Changed business model to loan vending machines and share revenue with retailers
  • Proved the revenue model with a few test sites
  • Raised significant funds to roll-out concept across Europe
  • Significant growth
  • Subsequently the company was sold to Costa Cafe

Company

New university for performing arts

coffeeNation

See Testimonial >

I would like to thank Peter Whiting and Tony Groom of K2 for their advice and support to my leadership throughout IAB’s investor preparation programme and fundraising process. We successfully raised over £1million and their input was key to this successful outcome. Their investor preparation programme ensured I was fully able to present the business and respond to challenging questions from investors, as well as it pressure testing our strategy and forecasts. In addition to their professionalism, their commitment and support helped me negotiate unfamiliar territory and deal with considerable business risk. I would not hesitate in recommending K2 to anyone seeking to raise finance.” – Mark Lethem, Founder and Managing Director, Institute of the Arts Barcelona

Situation on Appointment of K2

  • Excellent, British, management team in Spain with strong local knowledge and networks
  • Growing global market targeted with clear target customers and clear customer needs
  • Product development completed, premises found, state of the art, social media driven, marketing strategy under development
  • Team unfamiliar with fundraising
  • Great opportunity

Successful Outcome

  • Consulted at a strategic level on business structure, business model and financial planning
  • Supported CEO in preparation of an investment case presentation
  • Wrote Information Memorandum and developed financial model, in conjunction with local managers
  • Raised the required investment of £1m
  • Expecting a full intake of ca. 120 students onto first, three year, BA course in September 2014

Company

Bank & Online Login Security Software

coffeeNation
coffeeNation

Situation on Appointment of K2

  • Overtrading due to rapid growth
  • Director/shareholder dispute
  • HMRC threat of winding up
  • Invoice discounting funder not willing to allow drawdown against book debts
  • Business organised by functional discipline
  • Lack of project management of large IT projects that need multiple disciplines
  • Good accounting systems

Successful Outcome

  • Resolved director/shareholder dispute by one buying out the other on deferred terms
  • Terminated agreement with invoice discounting funder
  • Agreed 12-month time to pay arrangement with HMRC – since paid against terms
  • Reorganised business into multi-disciplinary teams with appointment of project managers to focus on profitability by project

Company

Financial & media software developers
coffeeNation

See Testimonial >

I am delighted to recommend Tony Groom of K2 Business Partners as someone to turn to for help in a crisis. My company had received a winding up petition from HMRC due to tax arrears. This had arisen because I had been bogged down with a disputed debt that I was depending on to pay our taxes. Meeting Tony proved to be my company’s salvation as he quickly grasped the key issues. He helped the company reach agreement with its creditors including HMRC for a Company Voluntary Arrangement (CVA). Tony helped me with the forecasts and the technical process of the CVA, his experience and advice was a huge help and enabled me and the creditors to do the deal quickly and fairly. The CVA meant that the petition was dismissed and we could continue to trade and pursue recovery of our own debtors through the courts. Stephen Ashurst, Director, Flowbox.com

Situation on Appointment of K2

  • Withdrawal of bank funding
  • Large disputed debt
  • Loss of large client
  • Fixed price contracts
  • Business model provided for equity in lieu of fees
  • HMRC winding up petition

Successful Outcome

  • Initiated litigation to recover debt
  • Revised contracts based on charging for time
  • Revised business model aimed at fees
  • CVA to cram down and reschedule liabilities

Company

Architects practice & eco new-build specialists
coffeeNation

Situation on Appointment of K2

  • Decline in sales due to time spent developing a zero carbon building system
  • Too many staff for fee earning architectural work
  • Overdraft at limit and effectively out of working capital with minimal book-debts
  • Significant creditor pressure including HMRC arrears
  • Overdraft and bank loan guaranteed by directors

Successful Outcome

  • Installed cash controls and weekly cash management
  • Hived business down into new subsidiary
  • Focused sales on core fee earning architectural activities
  • Staff retained but on reduced salaries
  • CVA of creditors in TopCo to cram down and reschedule liabilities
  • Personal guarantees not called

Company

Marine engineers

coffeeNation

Situation on Appointment of K2

  • Lack of control over cash flow
  • Bank concern about overdraft
  • Considerable creditor pressure
  • Fixed price tenders were unprofitable
  • Director guarantees

Successful Outcome

  • Installed weekly cash management tool
  • Refinanced overdraft
  • Changed contracts to charging time
  • CVA to cram down and reschedule liabilities
  • Director IVAs to protect them from bankruptcy

Company

Online educational & training company
SkillsITSince sold to:

coffeeNation

Situation on Appointment of K2

  • Start-up that had not reached break-even sales
  • Running out of cash with squeeze on credit leading to mounting creditor pressure
  • Supportive shareholders

Successful Outcome

  • Standstill agreement with creditors
  • Reorganisation to cut fixed costs
  • Identified exit options including sale and merger targets
  • Sold business and assets to repay creditors in full and distribute significant surplus to shareholders

Company

Metal Fabricators

coffeeNation

Since sold to

coffeeNation

Situation on Appointment of K2

  • A metal fabrication business with three factories that supplied the construction industry
  • Loss making following significant decline in sales
  • Bank was concerned about their significant exposure to approx. £1m

Successful Outcome

  • Installed weekly cash management
  • Agreed restructuring with bank and their insolvency advisers
  • Reduced fixed costs by closing one factory and making redundancies but done so as to retain capability and key staff, this included moving welding and fabrication equipment
  • CVA to cram down and reschedule liabilities
  • Bank exposure reduced to approx. £250k and is operating within secured facilities

Company

Industrial boiler manufacturer
coffeeNation

Situation on Appointment of K2

  • A 40-year old fabricator/manufacturer of industrial and commercial water heaters
  • Business in free-fall with no strategy, systems or controls
  • Loss making following decline in sales from £2m pa to £35k pa
  • Great product with long-term customers among hospitals, MOD and prison service
  • Delivery time of approx. 6 weeks due to having no finished stock

Successful Outcome

  • Replaced all non-manufacturing staff
  • Changed culture to focus on sales and service by changing reward structure
  • Raised finance and invested in holding components and finished stock to achieve next-day delivery
  • Outsourced fabrication work to turn the factory into a storage and assembly warehouse
  • Introduced lease finance model to secure long-term supply and service contracts based on refurbished boilers

Company

Vegan restaurant

coffeeNation

Transformed into a restaurant & bar

coffeeNation

Situation on Appointment of K2

  • A small vegan cafe in Brighton
  • Loss making with lack of control over costs
  • Occupied three floors where only one, the ground floor, was fully utilised

Successful Outcome

  • Applied for late night alcohol licence
  • Modest investment raised to finance refurbishment to install bar on all 3 floors
  • Converted to a themed bar format including fetish and burlesque nights
  • Introduced stock and till system to closely manage costs
  • CVA to cram down and reschedule liabilities

Company

Brand licencing
coffeeNation
Flagship store in Mayfair

Situation on Appointment of K2

  • Resurrected legacy brand that had been formed in 1600 and closed down in 1873 by an Act of Parliament
  • Brand was being licensed to third parties but lacked income and was loss making due to high overheads

Successful Outcome

  • Cut costs including staff and terminated lease
  • Transformed business model by selling own brand fine food products
  • Brought in Indian investors

Company

Children’s furniture & interiors
coffeeNation

See Testimonial >

Tony Groom from K2 advised the business when their growth had stagnated and he fully understood the issues of a growing, but under-capitalised business very quickly. Karthik Dasari, Tern Capital

Situation on Appointment of K2

  • Family run business for 34 years and IP largely based on creative artwork on hand-painted furniture
  • All products hand-painted in the UK in West Sussex
  • Luxury showrooms in London and Moscow
  • Elite client base but declining traditional UK client base
  • Decline in sales from pre-2008 peak
  • High fixed cost base mainly due to rent and staff

Successful Outcome

  • New investors injected capital to unlock value of the prestigious brand
  • Investment in new products, new artwork designs and licensing deals
  • Doubling-down on PR investment increased profile of business by partnering with Grosvenor House hotel
  • New accounting, CRM and order management systems that significantly improved customer service
  • Investment in growth strategy by introducing an interior design service and opening franchised showrooms internationally

Company

Furniture retail & wholesale
coffeeNation

Situation on Appointment of K2

  • Loss making furniture importer and distributor with warehouse and 4 shops of which only two made a profit
  • HMRC Bailiffs had taken walking possession over stock in warehouse
  • Bank fully exposed to invoice discounting facility
  • Bank held debenture to cover loans
  • Director personally guaranteeing bank

Successful Outcome

  • Agreed payment terms for release of stock with HMRC
  • Closed 2 shops
  • New investor acquired stock and took over the remaining premises and staff as a going concern
  • CVA to repay creditors including crystalised liabilities
  • Bank was repaid from recovery of book debts
  • Purchase of stock paid down bank to cover most of the personal guarantee liabilities