Quality of earnings, 13-week cash, leverage runway, working-capital unlock and the value levers behind the family-owned luxury house.
Liquidity of £38m (≈ 11 weeks of cover) and £75m of acquisition capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ £3.2m and clears £4.5m of overdue receivables.
8 of 8 headline metrics improving vs prior · still off target: Total Revenue £165m vs £178m, Adjusted EBITDA £30m vs £33m, Adj. EBITDA Margin 18.2% vs 20.0%
Closing the DSO gap releases ≈ £3.2m of one-time cash; £4.5m is already >60 days overdue and at collection risk.
Targeted collections on £0.9m; tighten deposit/milestone terms on long hospitality projects.
Rosewood (62d), Mandarin Oriental (59d), embassy/institutional (64d) lifting blended DSO to 55d.
Lock forward fibre where possible; reprice bespoke quotes for the new cost band.
Fibre prices up; risk to Custom Rugs gross margin if not passed through.
Unbanked EBITDA until captured.
£5m of add-backs (17% of adj.) — the diligence-grade walk.
Organic vs. acquisitive vs. price/mix vs. cost.
Net weekly cash (bars) and ending cash (line) vs. £6m minimum. Forecast trough: £11.3m.
Net Debt/EBITDA path against the 3x self-imposed, family-owned ceiling — modest leverage, ample headroom.
Normalizing laggard houses to a 50-day DSO releases ~£2.1m of one-time cash.
Concentrated in newer houses (Scalamandré, Stark Carpet, Old World Weavers) where billing discipline lags integration — the fastest cash win this fiscal year.
Repeat-designer revenue growth and where EBITDA is generated.
Total AR £25m
Overdue (>60d) = £4.5m at collection risk.
Accounts ranked by DSO and credit risk.
| Account | Revenue | DSO | Retention | Credit risk |
|---|---|---|---|---|
| Embassy / institutional (representative) | £1.3m | 64d | 100% | Medium |
| Rosewood Hotels (representative) | £2.2m | 62d | 104% | Medium |
| Aman Resorts (representative) | £2.6m | 60d | 108% | Low |
| Mandarin Oriental (representative) | £2m | 59d | 105% | Medium |
| Four Seasons (representative) | £4m | 58d | 106% | Medium |
| Yacht & aviation outfitters (representative) | £1.8m | 57d | 107% | Low |
| Studio Sofield (representative) | £3.4m | 55d | 109% | Low |
| Ken Fulk (representative) | £3.1m | 53d | 110% | Low |
| Kelly Wearstler Studio (representative) | £4.6m | 52d | 114% | Low |
| Peter Marino Architect (representative) | £5.2m | 49d | 116% | Low |
EBITDA uplift, DSO normalization and integration realization (as-acquired → current).
| Brand (cohort) | Acq. | Revenue | EBITDA % | DSO | Integration | Synergy | Status |
|---|---|---|---|---|---|---|---|
| Stark Carpet (flagship, 1938) | 0 | £52m | 0→19% | 60→53d | 100% | 100% | Core |
| Old World Weavers | 1992 | £22m | 3→8% | 66→55d | 100% | 96% | Integrated |
| Stark Studio Rugs | 2014 | £24m | 2→7% | 62→54d | 95% | 88% | Integrated |
| Scalamandré / House of Scalamandré | 2017 | £30m | 4→9% | 70→57d | 92% | 84% | In progress |
| Hinson & Grey Watkins | 2017 | £7m | 1→2% | 68→58d | 90% | 80% | Integrated |
| Ashley Stark Home | 2021 | £9m | 1→2.5% | 58→56d | 80% | 70% | In progress |
| Fort Street Studio | 2025 | £6m | 1→1.5% | 64→62d | 35% | 28% | Early |
Fibre, mill & atelier spend, DPO (working-capital lever), delivery and risk.
| Supplier | Category | Spend | DPO | OTIF | Score | Risk |
|---|---|---|---|---|---|---|
| NZ / merino wool growers | Wool & natural fibre | £14m | 48d | 94% | 90 | Low |
| Hand-knotting ateliers (India / Nepal / Thailand) | Hand-knotting | £12m | 50d | 86% | 88 | Medium |
| European fabric mills (Italy / France) | Weaving mills | £11m | 46d | 93% | 91 | Low |
| Silk filament suppliers (China/India) | Silk & fibre | £9m | 45d | 90% | 86 | Medium |
| Dye houses & finishing | Dyeing & finishing | £5m | 42d | 88% | 84 | Medium |
| Tanneries (hides & leather) | Hides & leather | £4m | 44d | 91% | 87 | Low |