A significant number of small businesses in the UK do not take full advantage of HMRC-approved...
In this series of articles, we present a case study for an accountancy firm.
Today, our accountancy firm case study looks at how we helped a company called Visulux.
This company was split out from Sigmacon (UK) Ltd, a family business distributing medical devices to hospitals, whereby the new company would manufacture their own branded equipment. We set the company up with online bookkeeping , VAT and payroll for their first staff member as well as advised on the suitability of (S)EIS for investor tax relief on this start up.
We helped with the growth of the business and certified document for ISO certification and other reports for their requirements.
Who are they and what do they do (and how do you help them)?
Visulux Technologies Ltd, https://www.linkedin.com/company/19366636/, is a newly established company that manufactures surgical devices for operating rooms in hospitals. Their products are sold to the NHS and private sector healthcare organisations.
We were appointed by Visulux to facilitate create a strategy that will eventually lead to business growth. With the clear objectives of the company, we implemented the use of the accounting software Xero which enabled the directors to get a well-defined picture of where the business was heading.
We also advised on SEIS tax relief on the start-up costs and for R&D tax credits on producing new products for the market.
What are the key challenges in their market?
The biggest challenge the director Nik Levey faces is being a new player in the market and having to keep up with the existing competitors. Moreover, it is vital he continues investing heavily in technology research and development and regulatory requirements.
It is a steep learning curve when a business is required to deal with international suppliers, developing products and designs, shipping international for component building, dealing with import authorities, banking and cashflow issues, and finally sales and customer care.
Fortunately, Mr Levey has experience selling these products. He found his business opportunity where others stopped selling certain products that were still viable.
What are they getting right?
Visulux has got the fundamentals right by maintaining the procedures and planning that has been implemented from the start. This lead to savings in year one and maintained a high level of savings going forward, through the SEIS relief and other tax savings.
Additionally, this improved the company’s margins and regaining the firms’ financial footing. All of this helped to provide high-quality equipment across its network.
We explained which schemes of VAT, PAYE, SEIS were appropriate and at what levels with the correct timings. We communicated this information clearly. Therefore, all the director had to do was run his business.
What makes them different?
The company’s innovative approach, personalised services and impressive growth in one year have given the company a strong stance. Visulux doesn't compromise the quality of the product in exchange for a cheaper price. Instead it promotes quality and value for the service.
Apart from the product quality, Visulux offers prompt delivery, buyer-friendly policies, and Mr. Levey’s prior experience in business and technology.
Without the SEIS tax relief, they would have to had to find external financing. This would have cut into their profit margin, making it more difficult to expand the business in a short time.
Mr. Levey intends to expand on the products that they offer and to benefit from R&D tax credits, to recover corporation tax and reinvest this back into the business.
Visulux already has long term contracts in place with key customers. This providing the cash flow needed to continue in a sustainable way ongoing.
Mr. Levey has taken on his first employee and office space in North London,