Neville Johnson Group is the leading UK designer, manufacturer and installer of quality bespoke fitted furniture in the home study, bedroom, lounge and home cinema. The Group’s revenues at exit in 2008 were approaching £20 million with significant ongoing growth potential. However, prior to our investment the business was making losses and was in need of a turnaround plan and new capital.
Endless supported a management buyout in February 2006 following a period of sustained financial and operational difficulty for the business. Neville Johnson was suffering from under-investment in key areas such as marketing and production facilities and this led to a severe decline in profitability. We completed the investment in a matter of weeks and immediately commenced the turnaround plan with management.
Endless provided new funding to re-capitalise the balance sheet and to support an investment program and turnaround project.
Endless realised its investment for a 7x return in just over 2 years. There were four key drivers behind this successful outcome – (i) restructuring the incumbent debt to a level more appropriate to the business; (ii) providing funding to support investment in key areas such as marketing, factory improvements, product development and showroom upgrades; (iii) re-incentivising key management with meaningful equity participation and (iv) strengthening the management team.
The business is now in excellent financial and strategic health with significant growth achieved in recent years and a wealth of development opportunities ahead.