Our Portfolio
House building and construction products
We look for:
- exclusive rights to produce or supply building products
- patented and branded building products
- inhouse or outsourced manufacturing based on tooling and dies
- satisfy clearly defined need for house building or construction
- provide enhanced energy efficiency and/or enhanced construction efficiency
Eco-building products – confidential ongoing project
The business of selling innovative ‘green’ building products was being dragged down by a legacy manufacturing operation.
While a CVA had temporarily addressed the balance sheet, it hadn’t dealt with the core trading problem which had simply returned, nor the directors’ personal guarantees.
K2's solution
We created a ‘lifeboat’ and:
- acquired the core business assets required to support sales
- restructured the business operations to a pure sales and installations basis
- invested in tooling to outsource manufacturing
- changed the terms of trade to ensure the business always has a positive working capital cycle
the outcome
The business is now growing and trading profitably. It is also investing in patents and tooling for new products having identified opportunity for expansion.
current status
K2 business partners owns 100% equity and has an agreement with management to buy a controlling interest based on their achieving targets for growth and profit.
since sold to Pro-Dig
metal fabricators
A metal fabrication business with three factories that supplied the construction industry, the company was loss making following significant decline in sales and the bank was concerned about their exposure of circa £1m.
K2's solution
We:
- installed strict cash management
- agreed a restructuring with bank and their insolvency advisers
- reduced fixed costs by closing one factory and making redundancies while retaining capability and key staff, this included moving welding and fabrication equipment to the retained site
- used a CVA to cram down and reschedule liabilities
the outcome
Restructuring reduced the bank’s exposure to a manageable level allowing the company to operate within secured facilities. Company is profitable and paying dividends.
current status
K2 remains involved.
Architects practice and eco new-build specialists
The business had suffered a decline in sales due to time spent developing a zero carbon building system and had too many staff for fee earning architectural work.
The overdraft was at its limit and the firm was effectively out of working capital with minimal book debts, significant creditor pressure including HMRC arrears, and an overdraft and bank loan guaranteed by the directors.
K2's solution
We:
- installed cash controls and weekly cash management
- hived the business down into new subsidiary
- focused sales on core fee earning architectural activities
- and retained staff on reduced salaries
the outcome
Successful restructuring using a CVA of TopCo to cram down creditors and reschedule liabilities and avoid a call on the directors’ personal guarantees.
current status
K2’s involvement terminated following payment of success fee on completion of its restructuring in 2010.