Stepside is a third generation business based in west Wales, providing speciality material handling to businesses in the food, agricultural, energy and utilities sectors.
DATE
2019
Sector
Agriculture
Location
West Wales
Services
Part Time Financial Director
SME Finance was introduced to Stepside Agri in 2019 by Lloyds Bank. The business had grown quickly, and had invested heavily in plant, machinery & equipment, but was facing constant cash pressures. The business had no accounting system, no management information and only out of date annual accounts, and so decisions were being made without data and facts to support. We supported by improving the business’s Financial Management through a part time Finance Director.
What we did: in the short term, we prepared cash forecasts to give the owners and bank some visibility over cash planning, this bought the business some time. We then implemented a Xero accounting system so that the business could produce up to date management information, and these were used to produce financial forecasts to secure the banks support. With improved information, the business owners could make informed decisions, based on facts.
What was the outcome: our involvement highlighted that certain contracts were loss making and draining cash, and this was compensated by other profitable income streams. With the owners agreement, the business made the decision to withdraw from certain service offerings, selling surplus assets, using that money to reduce debt and re-invest in profitable areas. Stepside went on to secure new contracts with key customers who would pay on time, investing in areas that were profitable.
Where are they now: Since 2019, Stepside has more than doubled in size, despite withdrawing from certain areas, and now works with great customers on profitable long term contracts. We have continued to work with the business on a retained monthly basis for the last seven years and have a great relationship with the owners, Daniel & Carys. We recently helped Stepside to secure funding from the Development Bank of Wales to purchase their premises from the previous landlord.