written by alastair barlow [blog]
The Patisserie Valerie story is one that Hollywood could very well have written. After listing on AIM in 2014, Patisserie Valerie held a higher than industry-average price-to-earnings (P/E) ratio, exhibited strong year-on-year growth and, just a year ago, had a valuation of approximately £450m.
However, mere months later the group entered administration and the Patisserie Valerie business was sold for just £8m (other businesses in the group sold for another £7.5m in total) rendering the previous £0.5bn valuation utter bollocks along with many angry shareholders and employees.
In my latest column for AccountingWeb, I highlight and explain ways they could have approached their cost-cutting exercise in a more responsible way (than switching margarin for butter in their pastry )…
1. Strategic internal benchmarking
2. Procurement analytics
3. Communicate and consult
4. Task force
5. Corporate governance
6. Procure to Pay controls
Check out the article and let me know what you think!