Our Portfolio
Industrial and manufacturing
We look for:
- specialist manufacturers
- scope for outsourcing manufacturing based on tooling and dies
marine engineers
Serving the shipping, oil and gas, chemical, power generation, and civil engineering sectors, the business has been trading for nearly 30 years from premises in Great Yarmouth and Middlesbrough.
The business had entered into a number of fixed price tenders which were unprofitable and was suffering from a lack of control over cash flow leading to considerable creditor pressure, bank concern about the overdraft, and exposure of the directors’ personal guarantees.
K2's solution
We:
- installed strict cash management tools and refinanced the overdraft
- changed the contracts to a charging time basis
- used a CVA to cram down and reschedule liabilities combined with IVAs for the directors to protect them from bankruptcy
the outcome
Successful restructuring followed by years of successful trading. No personal guarantees were triggered.
current status
K2’s involvement terminated following payment of success fee on completion of its restructuring in 2003.
HGV safety & security product manufacturer
Viper Guard manufactures and supplies a wide range of safety and security products to the HGV industry.
Before we acquired a controlling interest in 2006, the business was not viable as demand and margins were not sufficient to fund the direct costs of its factory.
K2's solution
We:
- Closed the factory and outsourced the manufacturing of our patented truck security products although we retained ownership of our tooling and moulds
- Transitioned the business to a warehouse and distribution model
- Built a network of third party manufacturers as suppliers
- Focused on marketing and selling our own and third party products as a niche supplier to HGV owners and operators
the outcome
Successful pivot of the business model followed by positive cash flow and profitable trading since 2007.
current status
Majority owned by K2 and management with strategy for growth. Available for exit as trade sale.
packing manufacturer - confidential ongoing project
A combination of lack of long-term investment meeting a sudden spike in demand led to failure and a fall into Administration.
K2's solution
We bought the assets by way of a BIMBO team, and:
- restructured the business, exiting non-core / unprofitable lines of business
- trained staff, introduced modern manufacturing methods and achieved leading quality accreditations
- obtained two rounds of VC funding
- achieved growth of 40%+ achieved in core products
the outcome
Sold a controlling interest to a major European consolidator which provides an enhanced route to market via a pan-European sales network and is currently investing in new lines to double manufacturing capacity to meet demand.
current status
K2 is working towards an agreed exit and sale of its minority stake to the controlling investor in early 2021.
industrial boiler manufacturer
A 40-year old fabricator/manufacturer of industrial and commercial water heaters the business had a great product with long-term customers among hospitals, the MOD and the prison service.
However it was in free-fall with no strategy, systems or controls.
Sales had declined from £2m pa to £35k pa, resulting in substantial losses, while delivery times had gone out to 6 weeks due to having no finished stock.
K2's solution
We:
- replaced all non-manufacturing staff and changed the culture to focus on sales and service by changing the 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 a lease finance model to secure long-term supply and service contracts based on refurbished boilers
the outcome
Successful restructuring and reorganisation to achieve profitable trading based on the lease of boilers with long-term service level agreements with positive cash flow and profitable trading.
current status
K2 sold its shares to management and ceased being involved in 2009.