About the client
Owned by Matt Magee, Pumpserv and Catercall are two distinct businesses facing similar challenges.
- Pumpserv is a nationwide pump repair, service and supply company primarily serving the public sector. The firm was hit hard by the pandemic and has worked hard to get itself back on track for growth after the extensive disruption caused by Covid 19.
- Catercall operates under the same engineer-based business model, providing catering equipment repair, maintenance and installation services in the South East and the Midlands.
Though their offerings are different, customers of both organisations want the same things: advanced technical expertise, a fast response, a reliable service, and competitive prices.
At the start of 2024, Matt recognised the need for external input from a team of finance directors who could oversee a good proportion of each companies’ financial activities and help them prepare for the various major strategic moves that were on the horizon.
The challenge:
Both businesses needed direction – and the management teams at each were keen to be held more accountable for the financial aspect of their operations. They had a good understanding of their respective companies’ values and market positions but were missing clear KPIs and a tangible blueprint for growth.
Pumpserv was preparing to relocate, so needed to find the funds to purchase a new premises. Catercall was planning an equally transformative decision: a series of strategic acquisitions – including several trading businesses – to help broaden the company’s expertise and provide them with routes into new market sectors.
While planning for these outcomes, Pumpserv and Catercall were also navigating the common challenges of running mid-sized businesses, including recruiting and retaining staff, and resolving internal HR issues.
The solution:
Our Portfolio Finance Director Paul Campbell was the natural choice for both projects. Paul boasts more than 30 years’ experience in the financial space and has a specific understanding of the obstacles facing service providers.
Paul sought to get under the hood of each business to determine their strengths, limitations, and longer-term objectives, working closely with Matt and his managers remotely and in person where necessary.
Paul supported Pumpserv and Catercall by:
- Developing and validating their business plans. Ideas had never been formalised, so now was the time to get clear on what was next for both businesses, and the action points each management team needed to implement to reach these newly defined goals
- Carrying out robust financial planning and modelling to ensure the businesses had the fiscal resources to implement their ideas
- Setting much clearer financial targets, in line with future plans
- Cash flow forecasting (specifically with Pumpserv, for the purchase of a new building)
- Monthly management reporting to ensure management had the financial data they needed to make better-informed strategic decisions
- Monthly board meetings to talk leadership through the management reports, go through a list of recent actions, and chart their progress against these actions. These discussions were vital to holding staff accountable for strategic developments
- Providing ongoing staff mentoring (specifically for Catercall, as the management team were not as experienced)
The results
Pumpserv:
7 key objectives were set as part of the business planning process, with specific actions identified to achieve them. At the end of month 4, all key actions were in progress. Revenue was already up over 20% on prior year and 9% on budget, EBITDA 100% up on the prior year, and management were confident all objectives could be met by the end of the year.
Catercall:
4 key objectives were set. At the end of month 5, revenue was up 24% on the prior year and 12% on budget, and EBITDA was up over 100% on prior year. 3 of the objectives were being achieved and the final one was on track to be achieved by year-end.
General:
Matt’s time with Dartcell has enabled him to see what’s possible from a financial planning perspective and enabled he and his teams to lay the groundworks for some profitable years ahead.
He also credits Paul and Dartcell with pushing his managers to focus on longer-term objectives and teaching them how to work more effectively towards the bigger picture.
Matt himself is committed to using his businesses as a platform for change. Achieving stronger financial outlooks for Pumpserv and Catercall will enable him to better support several charities that are close to his heart, including The Jigsaw Trust, which provides facilities and services for children and adults with autism. With more robust financial foundations now in place, he also plans to establish The Pumping Academy, an industry-specific training programme to help more younger people into the engineering industry.
Final words from Matt Magee, owner of Pumpserv and Catercall:
“We were initially attracted to Dartcell because of the flexibility offered by the team. There were no fixed contracts, no exit penalties, and a relatively short notice period – all of which signalled to us that the team were confident in their abilities.
“We were impressed by Paul’s diligence; he has been very professional and proactive. He was keen to get to know us in more detail and he fitted in well with our staff, who certainly appreciated his insights and experience.”