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Arthur Jones Motors Ltd

"A real success story brought about over a five year period by a dynamic and focused management team.  Leadership came in abundance from the son, Peter Jones, together with a commitment by his parents that allowed him to diversify the business and invest substantially into equipment, people and property. The link up with 8020 provided the key financial management support and direction to the Directors allowing them to deliver the results".

This company was established as a partnership over 30 years ago, incorporating in 2005. The business has grown by 200% in the last 5 years now employing 52 staff, turning over £3m in its core operation of vehicle breakdown and recovery.

The 8020 Input

The 8020 Finance Director was introduced in May 2000 to the then partners by their accountant who had very quickly identified a need for close day to day financial management in the business. This skill set was clearly lacking in the family and management teams then in situ.

There were obvious symptoms of their issues at that time, namely:-

  • There was a lack of management information such as monthly profit and loss accounts and knowing the breakeven turnover levels.
  • Their cashflow was negative and the bank needed re-assurance as to the reasons for this.
  • There was an urgent need to address the impending retirement of mother and father in the then partnership business.
  • The accounts department was struggling to cope.
  • The business was at a water-shed. The Recovery and Breakdown industry was changing rapidly around them and yet their business was not.

What happened next

The 8020 Finance Director set about the identification of accurate financial data to report back to the owners the exact position of the business and to start a process of review of the existing operations.  This early work which was completed over an intensive period of six weeks immediately identified further issues all of which were contributing to the financial and structural challenges the business was facing, namely:-

  • There were multiple systems for invoicing customers and gaps in the data
  • They were unable to identify Work in Progress.
  • There were five separate operations in the business with no analysis of the profitability of each.
  • There was no committed financial or business strategy in place.  They lacked a VISION.

The 8020 Solutions

8020 were fortunate to work in this case, with a family and management team willing and committed to improvement and prepared to address all the key strategic changes that were going to be necessary.  

The key driving force and dynamic in the business was Peter Jones (then only 28 years of age).  By allowing Peter the opportunity and freedom to overlay his VISION on this business and a market place that he knew so well was the key to success.  However all parties recognised that only with a financial control in place could that drive and ambition be focused effectively and ultimately succeed.

Our 8020 Finance Director delivered the following:-

  • 8020 provided a full management accounting and strategic management service for one day per week.
  • 8020 facilitated the creation of a business plan that became a working document at the heart of the business
  • 8020 retrained the accounts department, overlaying its advanced systems, processes and controls.
  • 8020 clarified the financial position of the business.
  • 8020 assisted the partners in the restructuring of the workforce leading to some redundancies.
  • 8020 refocused the partners’ attention to cash generation to stabilise the business.
  • Over time 8020 has created very detailed management information allowing close analysis of the four key operations of the business.
  • 8020 introduced an annual budgeting process. Budgets are devolved to key individuals with their performance closely monitored.
  • 8020 supervises the accounts department assisting with recruitment and training.
  • 8020 co-ordinated the retirement and buyout of the two senior partners followed by the incorporation of the business.

The Results of Working with 8020

8020 have worked with this client since May 2000. The growth of the business has been explosive.  The Company has won numerous industry awards and is currently one of the top ten independent operators in the country by size.

Our efforts have directly assisted and contributed to:

  • The building of a substantial commercial property portfolio.
  • An increase in personal net worth of the owner of the owners.
  • The rise of the company to No.1 in size and reputation in the East Midlands in its field of work.
  • The acquisition of a competitor.
  • A 200% rise in turnover and 200% increase in staffing levels.
  • An absolute focus on the strategy of the business.
  • The development of the accounts department to become an efficient and very productive team.
The Company goes from strength to strength and the partnership with their 8020 Finance Director is as strong and as important as ever.