Part Time FD and Freelance Financial Controller

Case Studies: Doorfit Products Ltd.

Doorfit Products Ltd.

The client, Doorfit was founded in 1953 and specialises in specifying and supplying high quality products in the areas of Architectural Ironmongery, Locks, Sliding Door Gear and Garage Doors. Doorfit employs over 60 people, with highly knowledgeable and experienced personnel in all key areas. Whether customers contact the client or visit, they will always receive quality service. The client stocks a huge range of over 30,000 architectural ironmongery products at its warehouse. So, whatever the customers need, they can be sure that Doorfit will offer a superb choice of products, backed up by a level of experience and expertise that makes a real difference.

The client is well established with an excellent reputation for quality and a history of good profitability. At the start of the project the internal management accounts were produced quarterly by one of the country's largest firms of accountants. These accounts were for the limited company as a whole and no information was produced to show profitability for the four trading divisions.

The company was operating close to its £400k overdraft limit, although this wasn't necessary. When reviewing stock it became apparent that levels were too high, slow moving stock was £300k and the provision was inadequate. No advice had been given how to improve cash control by the auditors.The company had just undergone a computer implementation and the directors needed advice how to use the reports available to best control the company, its margins and the overheads.

There were no budgets produced.

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  • customers paying on average 9 days quicker
  • very overdue customer debts reduced from £93k to £26k
  • bad debts reduced from £29k to £1k
  • profits increased by £70k

  • customers paying on average 15 days quicker
  • very overdue customer debts reduced to < £1k
  • profits maintained
  • full provision for all slow moving stock
  • cash position improved by £400k+
  • the consultant reduces his work to an average of two days per month

  • the client continues to go from strength to strength.
  • the consultant continues to work for the client on an average of two days per month.
  • cash position improved by £500k+ after four years
  • profitability remains good and the 06/07 year was the most profitable in recent memory

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