Selected Case Studies - Almondy
Almondy is a manufacturer of specialty branded frozen cakes, supplying both retail and foodservice across Europe. Smedvig sold its majority stake in July 2008, achieving a return of over 10x its original investment and a blended return of over 20% per annum.
In the seven years to 2007, Almondy grew turnover from £4m to £25m, an annual growth rate of 28%, and with typical EBITDA margins in the range 15-20%.
Smedvig used its skills in strategy, finance and HR to compliment the efforts of the management team at key moments in the growth of the business:
- In the UK, Smedvig developed a market entry strategy for Almondy, subsequently leading the recruitment of key executives to manage local operations.
- In Germany, Smedvig analysed complex sales and listings data to highlight opportunities for organic growth and product development which were subsequently realised.
- The growth of the business meant that a new plant had to be constructed during 2004-05, and the inevitable cost uncertainties and operational disruption made close monitoring of cash flow critical. Smedvig provided analytical resource for sophisticated ongoing cash flow forecasting, and when it became necessary Smedvig provided a loan and later new equity to ensure the balance sheet remained strong.
- In 2004 the MD, one of the co-founders, expressed a desire to leave the business and ‘cash in’ his shares. Smedvig arranged the sale of those shares, and then worked with the remaining co-founder to recruit a world class replacement MD.