Chic Paints Ltd Case Summary

1. Chic Paints Ltd (CPL) is a private limited company that manufactures paints and allied products to meet the highest international standards. CPL was previously a subsidiary of Ashstead Plc but was the subject of a management buyout (MBO) when it was put up for sale in 2007. Once the terms of the MBO had been negotiated with Ashstead, CPL then began to steadily exit their current market which had fierce competition and decided to move to a more niche end of the market providing a more specialised and better quality of goods to consumers. These changes steadily lead to a reduced turnover from £200 million to £120 million but has improved their gross profit to 30% from 12%.

2. CPL had five directors which negotiated the terms of the MBO- Greg Pearce, Jane Yip, Ruth Jones, Ahmed Khan and Susan Mather. Recently Dave Whistler joined CPL as finance director, replacing Jane Yip who left the company. Furthermore two other directors have also indicated they would like to sell their shareholding as they wish to retire, new investors are currently being found. CPL has …show more content…
The position of Alan Turner at CPL is that of an accounting systems technicians, employed mainly on reviewing accounting systems, procedures and to ensure that company policies in respect of ethical behaviour and sustainability are being adhered to. Alan Turner reports to the finance director, Dave Whistler and chief accountant, Hazel Richmond. The Accounting Department purpose is to complete all activities relating to the production of the accounts including sales and purchase ledger and payroll.. The Finance Director, Dave Whistler has the overall responsibility for the accounts department. The other seven accounts team members are responsible for managing the customer and supplier accounts, paying the employees, inventory costing and producing management accounts. Good working relationships are maintained throughout the business to ensure there is good communication and liaison between the