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.

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Acute Trust Turnaround

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Financial & Operational Support in Crisis Stabilisation