This female-led company has the environment all wrapped up in a creative and plastic-free product, of which they are extremely proud. Founder, Fran Beer, and her team started making beeswax wraps in their kitchens in early 2017 in a bid to cut as much plastic as possible from their lives. A few ruined irons later, and a lot of perfecting their secret wax blend, they created the Beeswax Wrap.
Our relationship with Fran started in 2020 when she engaged Ollie, Head of Corporate Finance, to carry out a valuation of her company. Based on the strength of the valuation we were asked to get involved in negotiations, restructuring and financing to allow the company to effect an MBO, all of which was done remotely during lockdown 1.0.
In order to achieve the transaction in the timescales that both parties were seeking, we had to obtain funding in very short order; this was achieved through our partnership with Capitalise. The successful completion of the MBO, initiated their desire for Randall & Payne to provide accountancy and business advisory services for Fran and her team.
Following the initial review of the accounts, it was established by Shaun, Accounts Client Director, that the product development could qualify for R&D tax credits. James Geary, Corporate Tax Director and R&D expert agreed and worked with the company to put together a robust claim for the first two years of trading in the limited company, generating tax savings of over £20,000 for The Beeswax Wrap Co. With a number of exciting pre-established and new product developments taking place, ongoing annual claims are expected which should become even more valuable and will help the business continue to grow. This is just one of the examples of how our full-service provision benefitted the client.
Shaun initiated a full review of the accounting data and reports which highlighted the need to change certain systems and processes, including the need to put in place a stock management system in order that Xero reporting would become more valuable and margins better understood.
We have also put in place a quarterly reporting review process for VAT and we meet Fran (virtually!) once every quarter to run through the management reports to establish key targets and identify actions that will allow them to reach those targets. In our first quarterly meeting we identified what success means to Fran and we are taking actions, step-by-step, to help deliver her plan for success.