About the client
W&H Roads is a well-regarded civil engineering company that has supported a variety of domestic and commercial developments in Essex and its surrounding areas.
Established more than five decades ago and based in Southend on Sea, the firm boasts an impressive fleet of plant and has invested heavily in its staff and equipment over the years – but like many organisations of its size, W&H was lacking clear financial data. It was also preparing for a significant leadership transition.
There was no one looking at the bigger picture where finances were concerned, which is why, having been introduced by a mutual contact, Harry reached out to the team here at Dartcell.
The challenge:
A series of external factors had placed a great deal of pressure on W&H Roads’ cash flow. As just one example, a slow market was influencing Harry’s decision to scale back some departments within the company.
Determined to future proof the business despite short-term setbacks, Harry knew he was at a fork in the road, but as he was working ‘in’ the business from day to day, he was finding it difficult to make holistic decisions.
Harry recognised that there was no advanced financial knowledge within the company and felt at a disadvantage without access to top-level fiscal insights.
He also did not have adequate visibility into the performance of the company’s two key divisions: civil engineering and haulage. Harry feared that the haulage arm in particular was struggling and making a loss overall, but his existing accounting practices were making it almost impossible to understand the overheads associated with each revenue stream, which meant the reporting function was weak. Harry was unable to make confident strategic choices with the information he was being given – and at a time when he was looking at ways to reform his management team and bring new talent into the fold, he needed a finance specialist to give him clarity and reassurance on the numbers when committing to new hires.
The solution:
Our Portfolio Director Paul Campbell was tasked with understanding where and how impactful improvements could be made to W&H Roads’ financial setup.
Paul supported the business in the following ways:
- Stabilising cash flow by producing accurate income statements, refining COGS and expenses reports, analysing performance across departments, and enabling Harry to make sensible judgements regarding future investments
- Optimising reporting – and, crucially, ensuring separate reports are generated for the civils and haulage departments
- Creating a robust business plan to help Harry and his team move forward in a clear, sensible direction. Paul and Harry will continue to review the business plan cyclically to ensure it aligns with market demands and growth plans
- Exploring ways to leverage the group as a whole. W&H Roads often partners with its sister company, AW Hardy, on local builds. Working in silos was proving to be ineffective so Paul assisted in creating a more joined-up growth strategy that was developed in the best interests of both firms
- Providing Harry with a valuable sounding board during a pivotal time for the company. Harry was facing some tough calls re staffing and investments but was able to better justify his decisions with good data and sound professional advice
The results:
Paul helped Harry navigate the company’s immediate challenges. Harry now knows that the right fiscal systems are in place to support future decisions, and he, along with his leadership team, can follow a clear strategy that aligns with W&H Roads’ longer-term goals.
Harry has regained confidence in his approach. He has also reported an uplift in morale across his staff – stability and clarity have inevitably been felt by the collective.
W&H Roads’ haulage department is operating much more efficiently and is turning over sufficient cash to cover its costs.
Final words from Harry Hardy, owner of W&H Group:
“Paul confirmed that some of my concerns and gut feelings about our financial situation were valid and he uncovered some surprises that needed to be dealt with.
“We’re in a much better position now we have access to Paul’s knowledge and insight. Crucially, we’re working with facts, not just gut feelings. Because we have reliable, accurate financial data to hand – and can view it in real time, with expert analysis from Paul – we can make investment decisions and offer pay incentives to our staff without overstretching the finances.
“Working with Paul and Dartcell has changed the senior leadership team’s mindset. We’re now having regular financial meetings and looking at our position with our eyes wide open. We can’t thank Paul enough for his help and we look forward to working with him closely as W&H Group evolves.”