The company has realised that its SG&A costs are high and are eating into their revenues to the extent of causing growing losses. During 2012, the company made several changes to improve their balance sheet. This included changes in senior management bringing down people cost by 7%, debtor days were reduced aiming at improvements in working capital management, reducing agency brands so that focus can shift to the core brands and finally, talk about migrating to a new transaction system which will improve their reporting quality. The company talks about “we have invested in the management of our major customers, improving geographical coverage, gaining new listings for many of our brands and have enlarged our customer base in the UK”, however, no specific plans are laid out in the annual report of how these targets will be achieved.
The company, if unable to turn its business around, can allow private equity to buy it out and reshuffle management to help establish a more profitable business. If it does not change its financial position soon the company is a prime target for takeovers by more profitable companies in its sector.
A financial analysis of the company’s balance sheet and income statement since 2009 reveals its short comings.

|GBP '000 unless otherwise stated | | | | |
| |2012 |2012 Common |2011 |2011 Common |
| | |size | |size |
| | | | | |
|Revenue |4580 |100.0% |5725 |100.0% |
|Change in Revenue(%) |-20% | | | |
|Cost of Sales |-3539 |-77.3% |-4319 |-75.4% |
|Change in COGS(%) |18% | | | |
|Gross Profit |1041 |22.7% |1406 |24.6% |
|Advertising and Promotional Cost |-317 |-6.9% |-336 |-5.9% |
|Other Admin Expenses |-1126 |-24.6% |-1120 |-19.6% |
|Depreciation and Amortisation |-9 |-0.2% |-6 |-0.1% |
|Impairment of Intangible Fixed |-22 |-0.5% |0 |0.0% |
|Assets | | | | |
|Total Admin Expenses |-1474 |-32.2% |-1462 |-25.5% |
|Operating Loss |-433 |-9.5% |-56 |-1.0% |
|Finance Income |47 |1.0% |13 |0.2% |
|Finance Expenses |-115 |-2.5% |-130 |-2.3% |
|(Loss) before tax from continuing |-501 |-10.9% |-173 |-3.0% |
|operations | | | | |
|Income Tax |0 |0.0% | |0.0% |
|(Loss) for the year |-501 |-10.9% |-173 |-3.0% |

2011 – 77days trade