The challenge:

Growing from operating as a small, sole trader company to a VAT registered limited company.

Background:

In November 2005, Meades Group was appointed by a self employed fencing contractor working alongside his son.

The small business found it easy to obtain work due to its reputation within the industry. However, in order for the owner to achieve his lifetime ambition, drastic changes needed to be made to take it to ‘the next level’.

Our advice was to establish a VAT registered limited company, whilst at the same time retaining sole trader status for when working with non-commercial clients. This provided the facility to manage and grow the business without having to charge VAT to non VAT registered customers, whilst ensuring all the necessary tools were in place to support the firm’s further growth.

Once sufficient additional business was generated, the sole trader business was subsequently closed.

Following formation of the limited company, we also held regular year end account meetings, ad hoc support meetings and provided regular guidance and advice, helping the client’s long term goals be met.

What did we achieve?

  • An increase in turnover by 2285% to almost £2million per annum
  • Trading from own premises – allowing for increased production by selling fencing supplies, not simply fitting them
  • Bulk buying – facilitating a change in client profile and optimisation of turnover
  • Increased staff numbers – enabling further business expansion
  • The owner was also provided with tax planning advice, resulting in tax savings of approximately £250,000 over a 5 year period. He has subsequently invested in a property portfolio of five buy-to-let dwellings, providing financial security for the future of his family.

What else did we do?

With help from De Montfort Professional Wealth Management, we have taken over the management of the owner’s pension portfolio. This is now growing steadily, providing peace of mind for his retirement.

HR advice and credit control advice has also been provided.

 

 

Find out more about working with us