The Situation
A large multi-franchise hospitality group operating 130 sites across the UK had grown rapidly — but that growth had outpaced its financial infrastructure. With turnover approaching £120m, the complexity of managing cash across a large estate had created dangerous blind spots, and the business was facing an imminent covenant breach that threatened its relationship with its primary lender.
Existing shareholders were aware of the pressure but lacked both the tools and the headroom to respond. There was no reliable short-term cash visibility, and with a funding gap emerging, the business needed urgent intervention.
The Engagement
We were brought in to design and build a 13-week short-term cash flow forecasting model — one capable of consolidating cash movements across a 130-site operation into a single, coherent picture that management could act on and external stakeholders could trust.
Within weeks of delivery, the model revealed what had been obscured by the complexity of the estate: a funding requirement that the existing shareholder base was unable to bridge alone. Rather than allowing the situation to deteriorate further, we shifted focus to developing a credible turnaround plan — one that addressed the structural issues created by over-expansion, set out a realistic path back to stability, and gave the lender a basis on which to maintain its support.
The Outcome
The debt provider, presented with a transparent financial picture and a well-structured recovery plan, agreed to continue its support. The turnaround plan was implemented over a 3–6 month engagement, preserving the business, protecting jobs across the estate, and restoring a constructive working relationship with the lender.
What began as a cash flow modelling exercise became a full stabilisation — delivering the visibility, credibility, and decisive action the business needed at its most critical point.