Case Study: Management Accounts and Insolvency Advice
Whichever industry you are in, we make it our business to understand yours. Here are just a few examples of how we’ve helped our clients.
How we overcame a hair-raising challenge to make a beauty salon chain profitable again
A hair and beauty business employed 20 staff across four prestigious London locations. Despite steady turnover and revenue, cash flow problems meant that the company struggled to meet its VAT and PAYE responsibilities. A third party advised them to seek a pre-packaged insolvency to restructure without causing interruption to business.
Excessive staff costs and insufficient management information
When Morgan Berkeley were introduced to the company by their bankers we discovered that staff costs were far in excess of industry norms. Yet the management information was so poor that the managing director didn’t even know.
Making the business work more efficiently
Our solution was to create greater transparency and accountability across the new hair and beauty company. We explored the business options and helped manage a careful and skilful reduction in staff members. Equally importantly, we helped ensure the remaining staff worked more efficiently. For example, staff attendances were coordinated with appointments to ensure more customers could be seen at busy times.
A rosy future beckons
Ten months later and the business is transformed. The managing director has upgraded salons, implemented new working practices and created marketing initiatives to drive business in quiet times. By making business decisions based on accurate management information, the company has returned to profitability.
Another satisfied customer
The company was delighted with us.
“Morgan Berkeley’s team quickly identified areas of poor performance, enabling us to address potential problems right away,” they said.
They are confident in our problem-solving capabilities to keep their business running smoothly too. “There’s always someone available at the end of the phone if there’s a concern.”