The Challenge

The business entered administration following a sustained decline driven by margin pressure, supplier disintermediation, and operational inefficiency. At the point of intervention:

• Sales had fallen to c. 50% of prior levels

• Customer confidence had materially eroded

• Stock availability issues were driving ongoing lost sales

• Supplier relationships were unstable

• The cost base was significantly misaligned to revenue

Without rapid action, the outcome was likely liquidation.

ATP Approach

ATP focused on rapid stabilisation, cash protection, and creating a credible platform for sale:

Operational Control

• Deployed experienced operators into key roles

• Introduced daily KPI management and performance discipline

• Implemented a consistent operational standards programme across all sites

Commercial Reset

• Simplified the product range to a core offering driving the majority of revenue

• Reactivated lapsed customers through structured outbound sales activity

• Re-established pricing discipline and margin control

Working Capital & Cash

• Rationalised inventory to focus on core lines

• Delivered immediate cash through targeted stock liquidation

• Stabilised supplier relationships to secure continuity of supply

Cost Transformation

• Executed a full right-sizing of the organisation

• Removed > £2.5m from the cost base

• Closed underperforming sites and simplified the operating model

Exit Readiness

• Built a clear, scalable operating model

• Established credible forward financial performance

• Positioned the business as a viable acquisition opportunity

Impact & Outcome

Transaction

• Stabilisation programme enabled the successful sale of the business and its assets, preserving value that would otherwise have been lost

Financial Performance

• c.£6m EBITDA improvement opportunity identified

• Clear pathway to £3m EBITDA at normalised revenue

• Cost base reduced by >£2.5m

Cash & Working Capital

• £669k cash generated from stock liquidation

• Improved stock efficiency and working capital control

• Stabilised cash position during critical trading period

Operational Performance

• Step-change in warehouse and branch efficiency

• Reduced stock-outs and associated lost sales

• Embedded sustainable operational standards

Commercial Recovery

• Rebuilt customer confidence and reactivated key accounts

• Restored trading momentum and order volumes

• Established a clear, competitive market proposition

Conclusion

ATP converted a distressed, post-administration business into a stabilised, saleable platform in a matter of months.

The engagement demonstrates ATP’s ability to deliver rapid operational turnaround, unlock cash, and drive real transaction outcomes in high-pressure situations.