A transport group operating bus services for local authorities and leader in its sector in the South of England was being squeezed by a lack of credit availability and increasing oil prices.
What we did for them
- The turnaround strategy included working capital and stake acquisition funding
- Turnaround fund invested £200,000 for a 51% stake in a new investment company which has acquired 100% of the transport group
- Provided a working capital facility of up to £300,000
- A condition of the investment was that debts owed to third parties (in excess of £1m) were written off
- Post investment in the first six months group turnover was c£4.3m with pre-tax profits at c£250,000
- To date the bank borrowings have been repaid and the group is trading profitably