Crisis Stabilisation, Financial Leadership & Transformation
Profile
Private Liberal Arts University, London
Employees: 250
Turnover: £30m
Location: London , UK
The Business Challenge
Kingsgate was introduced in November 2019. The University, at the time, was facing a period of unprecedented distress and imminent closure due to an irreconcilable breakdown in its relationship with its previous funders. A small Kingsgate team were engaged to support the finance team, which had high turnover and no leadership and to oversee delivery of critical projects to help preserve value whilst a solution was sought.
Kelly Jones, Turnaround & Transformation Director Kelly’s Bio
How We Helped
Served as trusted advisors to Executive team and Board of Trustees
Provided cash flow planning and scenario modelling to the Executive team and provided updates to the Board of Trustees, assisting in their assessment of the on-going risk of wrongful trading.
Helped to ensure structure and substance to M&A process that secured a financing deal with an education group
Provided contingency planning support in respect of ensuring robust closure plans, models and scenario based outcome plans.
Set up and delivery of PMO structure and activity tracking, governance and accountability • Led conversations with regulators and managed responses and strategy regarding regulator intervention
Supported delivery of year-end audit and accounts, on a ‘not a going concern basis’ • Recruitment of a fit for purpose, senior finance team
Led a zero based budgeting process for FY20/21 including the identification of savings across all cost areas of c.£9m (30%).
Results
Successful partnership with overseas University with financial support for an initial three year period, securing the University’s financial future in the medium term.
Post-deal integration work completed to ensure a sound financial and operational footing for the University going forward.
Delivery of a zero-based budget for FY20/21 reflecting partnership cash flow funding, income reprofile and student numbers re-profile given COVID-19 impact and restructured cost base, after delivery of savings equating to c.30% of the previous year’s cost base.
Delivery of a new five-year financial plan for regulator approval demonstrating return to break within a three year period.
