Turnaround finance case study – June 2019

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Our client is a mid-sized company in the construction sector. With uncertainty due to Brexit (2018-19) the full order book turned out to be a catalogue of delay and cancellation. With orders due to be confirmed of £4.5m the board thought that everything as under control. Then over half of the orders were delayed or cancelled. Yet with future quotes in the “book” of £18m the board was expecting a reasonable financial performance in 2018-19. Then some of these orders failed to materialise too.

The company had a small bank overdraft and previously used its own capital to fund works. The MD approached Cheswick Capital to ask us to secure new working capital funding and to assess the balance sheet issues. A new funder provided 50% of all applications and part %age of WIP to ensure that capital was flowing well. This avoided the need for any formal insolvency and the board remained in control of their business.

Are you involved in construction and have a working capital problem? Are you worried that your client cannot pay? Get turnaround capital options now.

Does your company have a funding problem? Do you need turnaround capital? Does your board or your client need advice on how to turnaround the business?

Contact Cheswick Capital today on 020 7416 6677 to get experienced experts to help your company.

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