KRR Prostream

KRR Prostream

Boiler Cleaning in Major Power Stations

One of only two businesses in this Power generation marketplace niche, in the UK.

I joined KRR in 2018 as General Manager and have since (with the assistance of JFP) undertaken an MBO and now own the business.

Planning Phase

Under Founder and owner
KRR started working with JFP in 2013 the initial planning exercise allowed the Founder, who by his own admission did not enjoy running the business but was an outstanding engineer and enjoyed the technical aspects of the business. He had identified the gap in the market but recognised he needed help to take the business forward.

With JFP’s Business planning assistance, the founder was able to step back from the business and take a clear view of all the issues he was confronted with. Following a logical process allowed the founder to challenge himself and develop a clear Plan on how to move forward, this included developing a clear set of Actions to drive the process of change.

JFP also created a 5 year P&L which was a very good reality check on all the ideas that were discussed. Issuing the planning report and leaving it with KRR for a few weeks before revisiting to check all the assumptions were sound, was very effective.

It gave KRR a clear, agreed start line and direction.

Implementation
JFP were retained in the non-exec role to support the journey.

Process
JFP set up a Board Meeting (BM) process which was followed for 6 years. In that time a fixed Agenda was agreed and over that period has changed to suit the circumstances and challenges prevalent at the time. Whilst for most of the period the meetings were monthly they moved to bi monthly and included ad hoc meetings where necessary, but the format remained the same. They agendas are ACTION driven. This consistency ensured that we tackled all the key issues appropriately and in a timely manner.

JFP have been involved in the non-exec chairman role, which naturally evolved. The big plus is they will work with you to meet whatever your requirements are and are very good at adapting their level of involvement too e.g. the pandemic.

They chaired meetings at all levels Board, operations, sales etc, as necessary, to ensure of ACTION progress. Importantly they handed the meetings over once management had mastered the skill. They were also involved in licence negotiation with the Swiss owners of the technology KRR use.

Annual reviews
Every year we have held a strategic review, which began with the original plan, and has now evolved into a relatively straight forward annual assessment of what we achieved in the previous year and what we intended to achieve over the next 3 years and in detail the immediate year. We ensured we knew what our objectives were at all stages and every effort was made to meet them.

Issues

  1. Renegotiation of the two key technical process licences with the relevant licensors in Zurich
  2. The sales process with HZI. Engagement with Hitachi Zosen Inova (HZI), a large global Japanese corporate clean tech company operating in energy from waste (EfW) and renewable gas, with a view to them purchasing KRR
  3. Initiated and steered the MBO process through after the HZI deal faltered.
  4. Conflict management
  5. Delegation and trust – KKR works in a very high risk environment
  6. Senior Management expectations
  7. Management involvement
  8. Accounting processes
  9. Teamwork and commitment
  10. Recruitment of Senior Management – General Manager (with potential for MBO)
  11. Speed and direction of sales process
  12. Mentoring key staff
  13. Directors rewards

Outcomes

  1. Implemented a long-term management process, which was refined as we progressed.
  2. Identified the business values
  3. Improved business communications
  4. Business structure – improved delegation and trust
  5. Appointed new accounts manager
  6. A successful Board Meeting process managed in the non-exec chairman role
  7. Grew the business by 30% in first 4 years till MBO
  8. Managed the sale negotiation process with HZI and put in place the Sale Team (solicitors/accountants etc). After 18 months of due diligence the deal fell through 7 days before signing off. KRR were not at fault.
  9. After the HZI Sale process faltered, initiated and managed 2 other potential sale processes
  10. After all the Sale processes faltered initiated and managed an MBO process including introducing solicitors, accountants and financing sources – TO SUCCESS. JFP were able to assist both seller and buyer

Since MBO:

  1. Attend BMs in a non-exec role and other key meetings
  2. Outsourced the accounting process – saving a significant amount of money
  3. Acted as business adviser to MD on all matters incl
    1. Taking on new accountants
    2. Outsourcing bookkeeping function - making significant savings
  4. Supported introduction of new computerised management processes
  5. Active involvement in developing the new structure and planning the future development
  6. Introduced external HR/Recruitment resource
  7. The business has grown by another 153% after MBO and trebled the NP

Misc Points
JFP have definitely helped the progress of the business and been able to offer clear advice at all times, even when circumstances were trying. They have a wealth of experience and contacts. Having them alongside particularly during the Sale process followed by the MBO has given confidence during some difficult periods to make difficult decisions and see them through. They are easy to work with.

The more I have worked with JFP the more I realise the strengths and skills they have brought to help KRR over the years prior to and since the MBO.

I would strongly recommend them in any non-exec role within a business. Their flexibility and ability to adapt their input to the prevailing circumstances is invaluable. They are easy to work with.