Appendix 1 – Illustrative Bridge Statement

£000s

Timetable

Current
negative EBITDA

(600)

Increase
in margin by

Price increase
by 3%

250

1 month

Improved
purchases by 2%

150

2 months

Vacate regional
warehouse

150

3 months

Redundancies

Reduced
salary/wages bill

400

Immediate

One off
redundancy payments

(120)

Immediate

Reduce head
office costs and management charges

200

Immediate

Target positive EBITDA


430

3 months

Notes

It is important
to stress that the key principles of a bridge statement (usually) are that
the “bridge”:

Should not require an increase in sales

Should
be based on as many certainties as possible

Should
be immediately implemented on an achievable timetable

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Addressing the fundamental lack of available risk capital that can be applied quickly in a financially distressed business

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