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Existing client case studies |
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Caterham Cars
A Caterham car is a true British classic. Since the Caterham 7 first hit the road in 1957, the brainchild of Colin Chapman, the man behind Lotus, the legendary lightweight sports cars have won fans worldwide with their speed, agility and control.
In 2005, Caterham Cars went through one of the most significant years in its long history, changing hands for the first time in four decades when the Nearn family sold the company in a venture capital-backed management buy-out. Soon after, it was rocked by two major blows - firstly, the collapse of Rover, which supplied its engines, and then the collapse of its major chassis supplier.
The result was losses in 2005 and 2006, so when new finance director Graham Macdonald arrived in February 2007, a top priority was to find the working capital necessary to help grow sales and return the company to profit.
He turned to Moore Stephens, who became Caterham’s auditors at the time of the buy-out, who suggested that the company claim valuable tax credits for research and development (R&D).
These credits allow businesses to make deductions for R&D in science and technology when calculating their taxable profits. At the time Caterham was making the claim, these could be backdated for up to six years, although from 31 March 2008, this has been reduced to two years.
Graham worked with Moore Stephens tax adviser Tracy Lewis to bring together several years’ worth of R&D, to claim back nearly £200,000 in credits. Together with a refinancing package that saved nearly £250,000 per annum in repayments, the move provided a valuable cash injection. As Graham explains: "It gave us a little bit more freedom - a bit more breathing space - to run the business."
The strategy certainly worked. The new working capital, coupled with the launch of a range of new models early in 2007, powered with engines from new supplier Ford, saw Caterham back in profit in 2007 and in 2008, Graham says: "The forecast is for continued growth."
Moore Stephens will be carrying out their fourth audit for Caterham in 2008 and Tracy works closely with Graham on the company’s corporation tax computations and returns. Her expertise was also useful when Graham was considering a restructuring of the Caterham group of companies.
Graham appreciates Moore Stephens’ expertise and professional skills, saying: "I use them if I have any accountancy or audit queries and think of them as my safety net. I’d have no hesitation about calling on them for advice in the future."
London Camera Exchange Group
The London Camera Exchange Group can trace its origins back to the 1950’s, when the founders opened a photography studio in Guildford. The business developed as customers began to take an interest in the equipment used, and began to offer their own models of camera as part exchange for newer ones. This part exchange policy is still operated in every one of the 29 stores nationwide. Additionally, each of the stores’ managers choose its stock personally, which includes binoculars and telescopes, as well as the range of camera equipment, so there is a real passion for the products that they sell.
The Guildford base is one of the reasons that the services of The GBC Partnership were originally employed. The relationship was already in place when Managing Director Nick Richens first joined the firm, as a branch manager, and has continued, developing and growing with London Camera Exchange Group. The accountants were a smaller firm then, who were eventually acquired by, and became part of, The GBC Partnership.
According to Nick, The GBC Partnership has assisted London Camera Exchange Group with acquisitions of their own. As the business has grown, new premises have been required, and The GBC Partnership has ensured everything was completed in a tax-efficient manner. Peter Hounslow has provided advice that stretches further than the financial realm.
"He can offer an opinion on location, for example," explains Nick, "when we are trying to decide on a new shop. Peter sits in on the board meetings and he has a good awareness of what the firm does, and how we like things done."
Although Peter is Nick’s main point of contact, Nick enjoys a good relationship with everyone at the practice. He feels that they are willing to listen, and are able to determine what he needs, and provide sensible answers based on what is discussed.
"I usually base my judgement of how successful a business relationship is by how little I need to have contact with the firm," says Nick. "As we’ve relied on The GBC Partnership more and more, the contact has inevitably increased. It’s always a very positive interaction. Peter and I get on well enough in a business capacity to have developed a personal relationship too. Although his taste in rugby teams leaves a lot to be desired."
Peter is a Harlequins fan, whereas Nick is an avid supporter of London Irish. Fortunately the competitive banter has only strengthened what was already a very solid relationship.
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