Restoring financial stability and supporting a successful shareholder exit

Background

Sonatest NDE PLC was an international engineering group specialising in ultrasonic and x-ray non-destructive testing equipment, with operations across the UK, USA, Canada, and Belgium. The business served industrial and technical markets requiring high levels of product reliability and precision.

At the point of joining, the group was facing significant financial pressure, with existing bank facilities withdrawn following cash flow challenges within key divisions. The situation required careful financial leadership to stabilise the business, rebuild funder confidence, and create a platform for recovery.

The challenge

The group needed to restore financial stability while managing a complex international structure. Cash flow constraints created pressure on operations and limited the ability to invest in future growth.

Addressing the situation required improving financial visibility, restructuring parts of the organisation, and rebuilding relationships with funders. At the same time, leadership needed a clear view of divisional performance in order to identify where changes would have the greatest impact.

The business also needed to simplify its structure and improve efficiency across multiple entities, ensuring resources were aligned with long-term priorities.

The approach

New funding facilities were secured through UK and Belgian lenders, providing the time required to stabilise operations and implement structural improvements.

The group was reorganised from six divisions to three, improving focus and reducing complexity. Financial oversight was strengthened to provide clearer visibility of performance across the business, supporting more informed operational and strategic decisions.

A number of targeted initiatives were implemented to improve profitability and release working capital, including improvements in inventory management, restructuring of group entities, and resolution of legacy system challenges.

Alongside operational improvements, work was undertaken to strengthen the overall financial position of the group and prepare for future strategic options.

The outcome

Over a four-year period, the group returned to profitability, increasing EBIT from £0.6m to £1.9m and improving overall financial stability.

Net debt of £3.25m was transformed into a net cash position of £2.2m, supported by improved financial control and operational focus.

The strengthened financial position and simplified structure enabled a successful shareholder exit at 17.8x pre-rescue EBIT, demonstrating the value created through improved financial clarity and disciplined decision-making.