Regaining Financial Control for an £18M Technology Business

The Challenge: Navigating Post-IPO Financial Instability in a High-Growth Tech Firm

A fast-growing silicon chip design business, recently listed on AIM, had raised significant funds through an IPO to support expansion. However, just 12 months later, much of the capital had been spent. Sales forecasts had not been met, supplier payments were overdue, and confidence in the company’s financial leadership had collapsed.

The group was effectively out of cash. The CFO had exited. The board needed urgent financial expertise to stabilise the business and avoid insolvency.

The Solution: Restoring Financial Control and Strategic Direction

Brought in as Interim CFO, Nick Stone was tasked with restoring financial control, rebuilding credibility with stakeholders, and identifying a viable path forward.

Nick’s immediate priorities were to:

  • Extend and rebase short-term cash flow forecasts using realistic assumptions
  • Rebuild supplier confidence through restructured payment agreements
  • Stabilise the finance function after the departure of the incumbent Financial Controller
  • Address an overstretched sales pipeline and implement a credible, long-term forecast
  • Manage a difficult audit process through to completion

To secure working capital, Nick negotiated short-term loans against expected R&D tax credits. He also introduced external advisors to ensure the board acted within its legal duties and avoided any risk of insolvent trading.

The Outcome: Achieving Financial Stability and Strategic Transition

With leadership re-established and financial clarity restored, Nick was able to:

  • Regain board trust in the group’s forecasting and financial planning
  • Secure new equity investment through engagement with existing and new shareholders
  • Lead the business through a successful, albeit qualified, audit
  • Support the company’s transition to a new ownership structure, via delisting and private equity acquisition

Key Achievements

This was a very difficult situation. Hiring a CFO of Nick’s quality and experience was essential to regain trust from the board, investors and advisors. The successful fund raise was needed for the company to survive and would not have been possible without his hard work and input. I have no hesitation in recommending Nick

If you want to help in achieving financial stability and a strategic buisness transition get in touch with FD4 today