Second generation family enterprise. Six companies with differing year-ends. Owners had no way of knowing how each company was performing; information was lacking and out of date, manual accounting systems were being maintained, and no formal reporting existed. Losses were in excess of €450,000 annually.
Davis Business Consultants were employed to turn that situation around.
- Formal reporting was introduced, along with the production of monthly management accounts for each enterprise.
- Detailed budgets were prepared and actual results compared on a weekly basis.
- Direct labour costs, sub-contracted labour costs, and direct materials costs were reduced among other overheads. New products were developed.
- Detailed job costing system was implemented.
Result
- Turnover increased by 75% to in excess of €10 million.
- Profits exceeded €750,000 – a turnaround of €1.2m.
- All systems were computerised