CASE STUDY 2

LAB TESTING SERVICES

Commercial Microbiology Limited was an owner managed testing laboratory, servicing both the oil & gas and also the food sectors. It had been established for more than 20 years when it was introduced to Symphony. At that time turnover was stagnating and profitability was in decline.
After Symphony personnel took on the role of Managing Director, the business was transformed within 4 years - sales had increased more than 200% and profit had increased from minus 2% to more than 28%.

The principal shareholder requested that Symphony personnel take on the role of Managing Director and during the next four years the business was transformed:

  • Profit constraints were identified
  • Customer and profitability reviews led to changes in contracting strategies and the leveraging of competitive advantage
  • Additional expertise was appointed to the management team
  • Internal processes were redesigned resulting in an improvement in OTIF from 38% to 99% and a reduction in customer complaints of 85%
  • An exit strategy was planned and executed

By the time the business was sold to a global trade player at the end of four years, sales had increased more than 200% and profit had increased from minus 2% to more than 28%.