Neville Johnson Offices
Management Buyout / Turnaround
Neville Johnson Group is the leading UK designer, manufacturer and installer of quality bespoke fitted furniture in the home study, bedroom, lounge and home cinema. The Group’s revenues at exit in 2008 were approaching £20 million with significant ongoing growth potential. Neville Johnson has continued to grow since our exit under the stewardship of the same management team, delivering a successful investment for Key Capital Partners and encouraging further private equity investment.
Based in Manchester, the business has a state of the art manufacturing facility with a national network of showrooms. Neville Johnson has exceptional brand strength with an affluent ABC1 customer base. Endless supported a management buyout in February 2006 following a period of sustained financial and operational difficulty for the business. Prior to our investment, the business was burdened with significant debt which led to cash shortages and major operating issues. Neville Johnson was suffering from under-investment in key areas such as marketing and production facilities and this led to a severe decline in profitability.
Endless provided new funding to re-capitalise the balance sheet and to support an investment program and turnaround project.
Endless realised its investment for a 7x return in just over 2 years. There were four key drivers behind this successful outcome – (i) restructuring the incumbent debt to a level more appropriate to the business; (ii) providing funding to support investment in key areas such as marketing, factory improvements, product development and showroom upgrades; (iii) re-incentivising key management with meaningful equity participation and (iv) strengthening the management team.
The business is now in excellent financial and strategic health with significant growth achieved in recent years and a wealth of development opportunities ahead.
"When Endless came in to support the business early in 2006 we were impressed with both the speed and clarity of what they offered. They were perfect for the company at the time and have more than delivered on the commitments they made. The introduction of Steve Sutherland completed the team and together we have been able to successfully restructure the business, building on what was always an exceptionally strong brand."
Nigel Pailing, CEO of Neville Johnson - Mar 2008
"Neville Johnson has become the natural choice for high quality fitted furniture for the home. The investment by Endless has helped it to overcome its earlier challenges and strengthen its position in the market. It is an example of the way in which private equity houses can work with businesses to play a positive role in improving their performance and helping them to develop and grow."
Paul Jones, Partner at Clearwater Corporate Finance - Mar 2008