Selected Case Studies - Almondy
Almondy is a manufacturer of speciality branded frozen cakes, supplying both retail and foodservice across Europe. In the seven years to 2007, Almondy has grown turnover from £4m to £25m, an annual growth rate of 28%, and with typical EBITDA margins in the range 15-20%.
Smedvig has 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:
- The success of Almondy in Scandinavia has given it many opportunities to expand overseas. Smedvig has used its consulting skills to assist the team in assessing the attractiveness of other markets.
- In the UK, Smedvig developed a market entry strategy for Almondy, subsequently leading the recruitment of key executives to manage local operations.
- 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.