Turnaround and Post-Merger Integration

Turnaround & Market Share Growth: Construction Products Manufacturer


  • The business had an established name in a demanding B2B market in which securing an order required next day delivery from stock.
  • The business was losing £100k/year.
  • A newly acquired business had not been integrated and had a distinct cultural divide.
  • Inventory was slow moving and working capital was 30% of revenue.



The engagement was to improve business performance to 10% of profit before tax (PBIT), to integrate the newly acquired business unit, and to reduce working capital to 15% of revenue.



  • Business diagnostics were run to measure transactional activity, value for money and credit terms in the supply chain, the flow in manufacturing, and the profile of customer/product profitability and draw on inventory.
  • Market investigation identified the opportunity to increase sales volume at marginal cost through sales to key accounts and export markets if operating costs could be reduced.
  • Bills of Material were created and a SysPro ERP/MRP system implemented to forecast and control material flow, together with SIOP to align output to demand and improved production planning.
  • The product range was rationalised and re-engineered in consultation with customers so as still to meet their needs.
  • Competitive supplier tendering, supplier-managed Kan Bans and faster turning rationalised inventories were implemented.
  • A “One Company” culture was created through cross-skilling and engaging all employees in visual management systems and continuous improvement programmes.



  • Turned around the business to make a profit of £750k (10% PBIT).
  • Revenue increased from £5.2m to £7.5m.
  • Annual savings of £370k were realised on £2.2m of annual purchase spend whilst improving supplier performance.
  • Working capital was reduced to 15% of revenue.

The newly acquired business unit was culturally integrated and improvements made to its production flow.

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