case study - turnround practice

Project Engineering Company

Stakeholder: group parent company.

Business: manufacturing and servicing large scale power generating plants and environmental control technology with operations in UK, India, China and Japan. Turnover: £300m. Employees: 3,000.

Objective: to turn the business round and to sell it.

Process: the turn-round involved the closure of loss making businesses and focussing the business on the international demand and away from its traditional UK market. During this period competitive pressures forced reduced the delivery time for new orders by 45% and the price of the product fell by 55%. Risk management strategies were created for projects priced in US$, project finance facilities negotiated and the 'after market' maintenance activity was separated from new equipment design and manufacture.

Outcome: sales rose from £200m to £300m pa and the business became profitable and cash generative. The assignment included the sale of the business to a Japanese company.