The brand
UK skincare brand, founded six years ago. £4.1m of revenue in the trailing twelve months. Predominantly D2C with a growing presence in two specialist UK retailers. Healthy gross margin at 71%. Profitable on a contribution basis, constrained on cash. The founder had reached the point where every new growth decision required a working capital conversation she had run out of patience with.
The diagnostic
The first month produced three findings. First, inventory had grown 34% year-on-year while revenue had grown 19%. The brand was carrying 138 days of cover on the hero SKUs versus a 90-day target. Second, three of the four hero SKUs were funded on outright purchase from the contract manufacturer despite a long-standing relationship that warranted credit terms. Third, supplier payment terms across the secondary supplier base were on a default 14-day cycle that had never been renegotiated as the brand scaled.
The work
- Inventory rationalisation: 17 long-tail SKUs identified for clearance, releasing £140k.
- Hero-SKU MOQ restructuring: smaller, more frequent production runs on two hero SKUs, releasing £180k.
- Supplier terms: renegotiated to 45 / 60 days net across the top 12 suppliers, releasing £100k.
The outcome
£420k of working capital released in 90 days. No change to the operating plan, no product cuts beyond long-tail clearance, no founder time on tactical execution. The brand has subsequently used the cash to enter a third UK retailer and fund the launch of a category-adjacent line.