Savings of over £200k per annum

As a result of service quality audits we had carried out for our client, we were asked to benchmark their energy costs and give an initial appraisal of their options.

Our initial appraisal revealed that, from analysing their energy profiles, many of their buildings were not optimised, but critically that their energy-buying contract would automatically renew in four months if they did not take immediate action.

We carried out a more detailed review of their expenditure and obtained approval from their current provider to release meter data to us and our specialist team.

From this and the details we already had on their properties (plant/equipment/operational profile), our operational team worked closely with the energy specialist to identify areas to reduce energy consumption and create a new profile of energy usage.

This allowed us to model a revised buying profile and choose a different mix of long-term vs spot-price buying, so that the overall unit cost was minimised.

We then renegotiated the energy procurement contract and awarded this directly rather than via a broker, and at the same time put in place an independent monitoring and reporting service (which was more than paid for by the savings realised on reduced energy procurement costs alone).

With this in place we then optimised the buildings, with all of the investment being paid back within the first year of operation as many of the issues related to poor management and control of key plant infrastructure.

As a result, our client reduced their energy costs by over 25%, saving some £200,000 per annum.

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Improved service delivery and reduction of business risk

Due to internal changes, our client no longer had an in-house team with the Facility Management (FM) expertise to oversee the suppliers that had been appointed, or to drive the transformation that was required in the FM service needed.

The organisation was also undergoing a significant cultural change and had to adapt to a new competitive position, as well as attract new staff and drive through a new way of working across diverse teams.

We undertook the management as an ‘interim’ Facilities Director for our client, reporting into the Head of Property and Procurement. Our remit included all properties, from the HQ and supporting buildings in Central London through to data centres and processing centres in the North of England.

We provided front-line operational management, a full contract review and analysis of key risks facing our client.

As a result of our first stage of support, we identified key gaps in the services being provided by the incumbent supplier as well as Health & Safety compliance failures and technical issues that represented a risk to business operations.

In addition to carrying out a full audit on the premises and agreeing a change programme, we also undertook the direct responsibility for day-to-day management of the properties and all FM delivery staff.

This allowed us to establish an identity amongst the FM staff, put in place a performance management system to improve service delivery and manage out the risks we had identified.

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Off-market acquisition and new geographic coverage acquired

Our client, the Managing Director of a successful professional services practice, approached us as he wanted to expand his business by acquiring a bolt-on complementary business and had a number of groups in mind.

However, he wanted to remain anonymous so that his plans could be tested discreetly and to ensure best value was obtained from the earliest stage of any purchase.

The practice was engaged in surveying, project management, design, safety and CDM advice across the UK and in a few regions overseas.

Before approaching the target groups, we undertook research on the sector to identify key growth areas and critical success factors. This allowed us to undertake direct meetings with the target groups where we identified their needs and key issues, which in turn allowed us to prioritise the groups for our client to meet.

This also allowed our client to remain focused on the core business in a highly demanding and competitive environment whilst we identified suitable businesses for our client to acquire.

The result was that a successful acquisition was carried out; the key partners in the acquired business also remained in place and have now become an integral part of our client’s team.

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Identification of over £500m of benefits

As part of a business acquisition, we undertook a review of the property assets and worked closely with the client acquisition team to assess both cost-saving initiatives and development gain.

Our client was buying a business that had a number of production sites in a range of locations (edge of town to rural). These sites were in varying conditions of upkeep and also needed to be able to meet modern manufacturing standards.

By working closely with the operations and the estates team, we were able to quickly identify which properties could be surplus, where best value could be achieved and also how surplus funds could be reinvested in a transformation programme.

We also assessed the wider market and were able, once we had outline options, to meet with local planners and development groups. This allowed us to identify local authority grants and also how our plans could release other benefits for local stakeholders in each of the sites we had prioritised.

Through our plan we were able to not only identify a significant surplus from disposing of non-core property, but by working closely with our client’s operational team, we also enabled re-investment in certain properties to create ‘best in class’ manufacturing sites.

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