Cheswick restructures London based software as a service company.

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Period 2016-2018

With an impending winding up petition threatening its existence in September 2016 the CEO contacted Cheswick Capital for help. We organised a time to pay deal with HMRC to repay £247,000. This was partly funded by the R&D tax credit which we helped them apply for. We additionally restructured the management team and reorganised the intellectual property suite.

Our growth expert George Davis help the board build their business plan for the future. This plan and new structure enabled a new investment into the company and Cheswick also arranged a new working capital facility. A group company was formed to be the investment vehicle for Cheswick to take a 50% stake. We continue to hold this investment for the long term. The intellectual property (IPR) is safely held in the group company.

Sales have risen 40% to £2.7m and the business is on course for £500,000 EBITDA in the year ending September 2018. This from a perilous position in October 2016 when it was about to fail.

The chief executive was brave enough to say when contacting us “I know what I know, but didn’t know what I didn’t know “!  By being prepared to call for help and LISTEN to the turnaround experts from Cheswick Capital, he saved the company and built value for the shareholders. 

Long term we believe the IPR will grow to have significant value, which will make the group an attractive acquisition target.

Are you facing growth problems? Run out of working capital but have a great business? Contact the experts at Cheswick Capital today on (020) 7416 6677

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