Getting Highwood ready for growth
Highwood Consultants Limited (Highwood) manufactures synthetic timber products using recycled plastic. It originated the process 30 years ago and paved the way for recycled timber replacement products in the UK. Highwood’s supply chain is completely UK-based giving it a Made in Britain status. The products are made in its factory in Runcorn, Cheshire, from 100% recycled plastic to replace timber, composites and other recycled plastics, which are used in many outdoor applications, including canopies, composite doors, fencing and gates, and outdoor furniture.
Highwood’s UK business was failing to grow and when revenue began to fall it was obvious that changes were needed at a management team level. The shareholders believed in the product but were unsure whether the problem could be resolved. Collinson Grant was engaged to investigate the business performance, advise the shareholders and implement the actions that presented the best value for them.
We analysed data from 2008 to 2022 on its financial performance, customers, products, and volumes. It showed that, despite the business maintaining revenue over several years, it was regularly losing large customers and the revenue should have been at least four times its current level.
Interviews with employees, suppliers, and existing and old clients found that customers generally liked the product but were regularly let down by the business. Old customers switched to competitors or changed to a different product, and existing customers were actively looking for replacements. Suppliers were also increasing prices creating a challenging environment.
Collinson Grant implemented an immediate recovery plan to stabilise the business. This included improving relationships with customers and suppliers, approaching old customers to win them back, controlling costs, improving employee engagement and stabilising and supporting the management team. These actions prevented the business from closing, allowing time to develop a plan for growth.
Further work commenced to understand competitors and opportunities for growth. This resulted in a targeted product offering that was easier to sell and created significant growth prospects. Collinson Grant developed a detailed five-year business plan to transform the business from loss-making to profit with the creation of significant shareholder value. This allowed the shareholders to evaluate immediate business sales options versus continued investment. Collinson Grant supported on this evaluation. Shareholders decided to reinvest in to the business and in support of this, the shareholders needed to hire a Managing Director. Collinson Grant managed the recruitment processes, and the ultimate result was the appointment of a new Managing Director to the client’s satisfaction.
The business turnaround efforts from Collinson Grant prevented the collapse of Highwood and returned it to a path of profitable growth, presenting its shareholders exceptional value.
“The Shareholders have long supported the business and its product and had been frustrated by the constant barriers to growth. Collinson Grant’s support has allowed the barriers to be overcome and identified a route to unlock the potential in the business”.