ABC Pre-school

Case Study – ABC Pre-School Group

ABC Pre-school Limited is in its 15th trading year. The business operates multiple childcare facilities in the North West region, providing childcare for ages 0-11, primarily on school or other council owned premises via lease and provision of services agreements. Their services include nursery – 0-3 age group, pre-school – 3-5 and before and after school – 5-11 age groups.

Their Challenge

In order to benefit from significant growth in the sector, ABC wanted to move towards owning rather than leasing day nurseries. This involved substantial capital outlay and moving away from the sector that they had traditionally specialised in. The Directors needed the confidence to know that this was the right strategy for them and how they would finance this expansion and change in direction.

Our Solution

Ridgetown undertook market research and competitor insights to confirm that the strategy was correct. We proved that a number of successful groups had taken this route and were more profitable than the sector that ABC favoured. The research was underpinned by detailed financial appraisals that looked at a 5-year growth and funding programme that would be shared with lenders and investors. The settings profitability was a focus and key performance indicators underpinned a change in the management reporting, to focus strongly on the ROI. The Directors were mentored throughout this whole process over several months.

Our Achievements

ABC Pre-school Group has doubled in size over the period of Ridgetown’s involvement and seen over 700% growth in profits. They have successfully acquired their first owned nursery setting, which has been seamlessly integrated into the group. This success has spurred the desire to expand further, so Ridgetown are now exploring new target acquisitions, including securing inward investment to support the growth. The investor readiness of the group and its enhanced management team has really unpinned their achievements.

“Ridgetown has helped us with a growth strategy based on the findings of significant market research. Following their guidance has helped us grow profits by 700% and double in size.”

 

Lee Johnson – Owner, ABC Pre-School Group