About the Company

The Company specializes in providing gas heating installation and maintenance services to customers across the UK, principally in the social housing sector. Annual turnover was £26m and the Company operated with a £2m invoice discounting facility at the time Duff & Phelps was engaged.

Duff & Phelps' Role

When the Company started to suffer from reduced margins and loss making contracts, Duff & Phelps was engaged to undertake a review of the Company's recent trading losses and their impact on both the short-term cash flow position and the longer term viability of the business. 

We worked alongside the management team to provide the key stakeholders with visibility on the Company's cash flow requirements and assisted the Company and its Invoice Discounting provider with an appraisal of the options available.

Duff & Phelps secured a Time to Pay arrangement (TTP) with HMRC on the Company's behalf and supported the management team with assessing proposals to other key creditors. In addition, alternative funding options were introduced by Duff & Phelps to improve the Company's working capital liquidity and we supported management through a refinance process.

As a result, the Company benefited from a new and increased £2.5m invoice discounting facility and £1.4m property loan from an alternate Asset Based Lending provider. This positive outcome ensured that the Company now has an optimal funding structure in place to support its turnaround strategy and long term growth ambitions.