About the client
Bluefort Security is the UK’s leading independent security solutions provider. The partner of choice for a huge range of organisations – including blue chip companies like Virgin Media and several High Street banks – Bluefort is at the forefront of innovation in the cybersecurity space, delivering comprehensive protection from evolving cyber threats via its competitive on-demand model.
Director Ian Jennings instructed our lead financial director, Russell Pope, back in 2017 when he and his co-director, Dave Henderson, were exploring private equity options with the intention of buying out a sleeping partner. After working with Russell, they found they didn’t need to pursue this route after all and arranged a straightforward buy-out instead.
However, the process reinforced the notion that they needed additional support. The pair were impressed with the assistance Russell had provided so far – so, in 2021, they decided to instruct Dartcell to provide their fractional CFO services.
The challenge
At the start of this new era for Bluefort, it was agreed that the organisation needed to be overhauled completely. Russell realised at the beginning of the process that Bluefort was an easy business to understand, but a challenging business to account for – so a more strategic approach was needed.
The firm had evolved steadily in the 14 years since it first started trading, but its systems were no longer fit for purpose; the team were relying on 5,000-line Excel spreadsheets for their financial insights and followed unstructured and rather informal methods for forecasting and budgeting at the time, which meant they were (often unknowingly) missing out on opportunities and cost savings.
There were no KPIs in place to help management track their month-on-month and year-on-year growth, and staffing issues within their finance department were hindering their progress, too.
The solution
In the three years since Russell started working with Bluefort in an FD capacity, he has:
- Sourced and implemented a new financial system, which has transformed the way the company’s accounting requirements are managed.
- Assisted with recruiting a new financial controller; someone who could oversee this system and maximise the value gained from this new technology.
- Set formal budgets and forecasts, which gives Ian and his team the ability to measure their achievements against their targets.
- Set clear KPIs, including ARR and ARM metrics, which are particularly important for SaaS businesses.
- Facilitated a clear strategy for the business focused on achieving the shareholders objectives.
- Chaired monthly face-to-face board meetings and ensured these are an important part of management’s schedule so everyone remains accountable for their own targets and objectives.
- Introduced a balanced scorecard as a means of measuring internal operations and external outcomes by analysing past performance data.
- Helped to restructure the organisation, setting the foundations for faster and more sustainable growth across departments.
- Liaised with banks and other third party partners on Bluefort’s behalf, taking these responsibilities away from leadership’s desks.
- Streamlined reporting on foreign currency transactions so leadership has access to the true cost of exchange rates on a deal-by-deal basis (not just a yearly estimate).
- Changed invoicing processes to avoid unnecessary forward payments on VAT.
- Assisted with reshaping the company’s value proposition to maximise profits with evolved wrappers for core products that help to set Bluefort apart from its competitors.
- Helped identify the ROI from various products and services, colouring in the details to develop offerings that are great value for customers and worthwhile for the business financially.
Russell quickly established a strong relationship with Ian and became a sounding board for leadership. As well as implementing the above deliverables, Russell has been on hand throughout to offer guidance as needed, often being called upon several times a week for his insights.
The results
The business is virtually unrecognisable. The organisation has been completely restructured and much of Russell’s time has been focused on transforming systems, processes and solutions to set the company up for fast growth and a profitable future. Despite the significant changes, turnover has increased from £12m to £14m and the management team have reinvested the resultant profits into the company. Ian and his team are now following a 5-year growth plan and are expecting to reach their targets by year 5 end.
Final words from Ian Jennings, Director at Bluefort Security:
“Russell has brought a level of maturity to our business that we couldn’t have achieved if we were left to our own devices.
“He’s the voice of reason in our monthly meetings, and he is highly adept at making us question our decisions and look at our choices in a more analytical way. He’s got an angle that we haven’t – not just from a financial standpoint, but in terms of managing and scaling businesses like ours.
“After many years of working together, Russell is in our company’s DNA. He has been instrumental in our evolution and, best of all, he’s a thoroughly nice person to work with!”