GB Building Solutions new SMT 131

GB Building Solutions have spent the time since the management buy-out from the MJ Gleeson Group changing their entire senior management team. It has recently been revealed that GB have delivered a 15% rise in turnover for the year ending 30th June 2008 since the new SMT was in place. Martin Smout, chairman and chief executive of GB commented "The approach to business has changed, it is all now about working with clients and finding solutions. The senior team has changed progressively over the three years."

Smout continued, "We brought in people the three of us worked with in the past. All the previous senior management team have left. As we turned up the heat they came in, one by one, and said they were finding it difficult and wanted to move back to a business where they could live a little quieter."

"We re-valued the assets we bought from Gleeson," says Smout. "There were losses in the portfolio that were not identified at the time of the deal." Current trading has been strong which has allowed GB to build up £20 million of cash. The companies share capital has also risen from £1.4m to £5.3m as a result of behind-the-scenes financial moves. "At the time of the MBO we had £1.4m and the balance sheet was thin. Also, there was a £2.5m loan note from Gleeson which carried 24% interest though, thankfully, this was rolled up for the first two years. That high-interest scenario would have kickED-in this year but before it did we agreed a debt-for-equity swop. Effectively no cash changed hands."