The client
Our client originally began trading in 2016, with a business model that was based around the export of animal feed products to China. With strong profit margins and an efficient production model, the business began to do well. However, in early 2020, the restrictions of the Chinese Government amidst the Covid-19 pandemic severely disrupted international trade and had a knock-on effect for the business. Not only did they lose access to their main customers, but they were also saddled with a significant amount of returned product in transit and a pipeline of goods with no end user.
How we helped
With the business plans in disarray, an established cost base and a revenue stream slowly disappearing, the owners of the business were looking to re-evaluate their set up and required support and guidance for the company’s future.
We gave the owners the time and support they needed as they recapitalised their balance sheet and accessed funding from lenders, before making the decision to change their entire business model.
Our client moved into the production and processing of animal food for the UK market. This naturally came with a significant amount of changes to many aspects of their business practice, such as a change to health and safety legislation, working practices and a significant investment in capital equipment.
We also assisted in the changing business model, carrying out a restructure of the business. A new holding company was established to add an element of protection against the inherent trading risk of a new market.
Our VAT advisory team also assisted with a group VAT registration and managing a VAT enquiry our client received from HMRC.
The result
Over the following years, the business went from strength to strength and is now extremely well established in the sector. With PKF Smith Cooper’s support, the owners were able to clear down all the original borrowing, make a significant investment into the business and align their own personal remuneration plans with their individual needs.
We consistently provided vital advice for our client throughout the process as and when it was required. Our team of business advisory experts worked with them on their journey, which has seen the client transition into quarterly payments of Corporation Tax, increase their balance sheet value and develop a plan involving their pension scheme.
Our client was happy to comment on our service:
“The team at PKF Smith Cooper, specifically Martin Gadsby as our lead partner, have been there for us all the way along the journey in the last 8 years. There have been many ups and downs, and we feel that we have the support of the whole team for what we need, and they understand the challenges businesses face every day.”
Leading business advisory services for companies in the Midlands and beyond
If you need advice on the future of your business, PKF Smith Cooper can help you get back on track. Speak to our business and advisory service experts today to find out more about our comprehensive solutions.