Sector: Furniture Industry
Product Range: Modules for office furniture
Revenue: ca. EUR 130 M1
Employees: 16001


Initial situation

  • Strong national and international growth
  • Below-average margins compared to the competitors
  • A planning exists only for 3 German companies on P&L level, a consolidation has never been carried out
  • Full external financing of sales growth and investments
  • Increasing shift from long to short term financing
  • High repayments to be made and expiring overdrafts


Procedures and Services

  • Creation of a restructuring concept based on IDW S6
  • Introduction of a consolidated, integrated corporate planning
  • Development and implementation of a comprehensive, multi-site program of measures:
  1. MOQ ': Reduction of customer-induced old inventories and higher prices for selected products / customers
  2. Establishment of a price spread controlling
  3. Realization of purchasing savings through change of supplier and international sourcing as well as material substitution


Results

  • Ensuring the existing financing until December year 2
  • Rescheduling of finances from collateral pool after successful restructuring in the middle of the year 2
  • Increase in EBIT margin from 1.9% to 7.0% within 18 months
  • Most of the measures (about 80%) could be achieved without staff adjustments
  • Consolidated planning of the group for the first time at the monthly level in the income statement, balance sheet and cash flow
  • The group has full transparency about the results of the subsidiaries

 

Source Concentro;1 when commissioned