For June David Ings provides us with a no nonsense blog, showing how good, honest, sensible advice can help turn a company round, together with a great deal of hard work by the owners!
One of our clients, Chappell Builders Limited of Andover have recently been nominated for the Test Valley Business Awards as Small Business of the year. This was the culmination of a number of dramatic trading years that started on the brink of closure for the company. A real success story during this period of recession.
In July 2008, Langdowns advised the directors to seek insolvency advice, the company was technically insolvent and was faced with mounting competition at a time when the recession was really biting. The advice they sought did give them some positive alternatives to closure but it was made clear that they could only be adopted if the directors were confident that working practices could be changed and the whole ethos and direction of the company reassessed.
With Langdowns help, the directors and other family members took some major strategic decisions to move the company forward and with stronger management control on pricing and overheads and as a result they began to turn the corner and generate profits for the first time for some years. Further adversity however came their way when their biggest customer , Rokbuild , went into administration in 2010, owing them a substantial amount of money. The directors turned this potential disaster into a positive development by contracting direct with some of the customers , securing better rates and have gone from strength to strength ever since.
The recession has hit the building trade very hard but Chappell Builders have demonstaed that with an excellent reputation for the craftsmanship they offer , the tight control of the finances, knowing where they are on a day-to day basis and sheer hard work, the well organised business can survive these hard times.
We would also like to take this opportunity to congratulate Chappell Builders on their success in nomination for this award and the hard work they have put into the business.