How we helped The Flavourworks achieve 10% year-over-year growth
The Flavourworks is today one of the most innovative ingredients suppliers in the UK, creating exciting new flavour ideas for the country’s top supermarkets and foodservice providers.
Established in 1989 by Richard Bancroft (originally as Markus Products), The Flavourworks launch over 250 new lines every year and have developed some 80,000 recipes since the business began.
In 2018 The Flavourworks undertook a Management Buy-In/Buy-Out to bring in Chris Ormrod as new MD in order to enable Richard to retire.
The challenges faced by the business are not untypical of many SMEs in the sub £20m turnover bracket. For this project we focussed on three main areas:
Succession planning (Richard wanted to retire)
Attracting investment in order to take advantage of new market opportunities
Broadening the product range, steering away from commodity items and creating more high margin value-added products.
The solution was centred on a recapitalisation, and structuring a Management Buy-in, with the Old Mill team playing a pivotal advisery role.
Our Corporate Finance specialist, Mark Neath, created a forecast and business plan for the bank and also, importantly, helped with critical tax clearance during the Management Buy-In.
Mark and the team also supported The Flavourworks through their due diligence process and worked with lawyers on working out a deal structure that would be acceptable to HMRC whilst enabling the individuals involved to attain their desired outcomes. As part of that, Old Mill helped The Flavourworks apply for and secure, HMRC advanced clearance. We also worked with Michelle Keating (The Flavourworks Finance Director) to create a financial model which would meet the due diligence requirements for bank lending.
With investment now secured, our trusted advisers are now helping The Flavourworks to build a sophisticated forecasting model that will allow them to both budget for the next 12 months and also create a proper five year plan.
“Working with Old Mill is like working with friends that just happen to be accountants and tax specialists.”
Chris Ormrod, MD, The Flavourworks