FLAME HEALTH ASSOCIATES LLP

Other human health activities

Funds Requested

£81,600.00

Offered so far

£25,050.00

Loan term

60 MONTHS

Auction Deadline

2019-09-02

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About the Business

Company Name: FLAME HEALTH ASSOCIATES LLP Company Number: OC364544
Business Type: Other human health activities Years Trading: 5-10 years
Business Location: London

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

Personal Guarantee

Est. Equity: 50000.00

All Assets Debenture

Est. Equity: 0.00

Equitable Charge

Est. Equity: 90000.00

Risk Indicators Identified:

Important Files

Who are we?

Flame Health Associates LLP are a recruitment business with a niche in a number of sectors including Healthcare. Our Specialist Divisions consistently provide cost saving, consultancy based recruitment solutions across the UK to businesses of all sizes. Flames activity goes a long way into extending the search beyond our initial database and advertising activity and we utilise all of our experience and expertise to ensure that we find the most suitable candidates available for your organisation. As an organisation, we are fully compliant Corporate Members of the Recruitment & Employment Confederation (REC) and are committed to its Code of Professional Practice. We have over 150 combined years of experience within Flame Health Associates, coupled with a thorough understanding of how recruitment strategies have evolved over the last twenty years and which direction they will take over the next twenty years.


As a consultancy, we operate across a diverse range of expanding healthcare sectors; we consistently provide a diverse range of recruitment solutions, to a wide variety of market-leading, niche healthcare & medical device organisations across the UK and Ireland, with PSL status secured with internationally recognised companies including ASDA, Tesco, Specsavers, Boots, Superdrug, Well Pharmacy, CooperVision and Essilor to name a few.
Optometry – We have a demonstrable track record, of working exclusively with forward thinking and dynamic multiple Opticians, enterprising Independents, UK wide Domiciliary Companies and Specialist Optometry/ Ophthalmic providers including laser, IOL, Glaucoma, Cataracts, AMD, Oculoplastics, and Diabetes.


Pharmacy – We provide solutions in Community Pharmacy, GP Surgeries, Walk in Centres, Urgent Care Centres and Hospital Pharmacy. We consistently provide a proven consultative service to our candidates and clients within this diverse, exciting and rapidly developing sector. Typically we place Superintendent Pharmacists, Pharmacy Managers, Independent Prescribing Pharmacists, Operational Directors/Managers, Regional Directors/Managers and all types of associated support staff across the sector.


Primary Care – We provide solutions for GP Surgeries, Walk in Centres, Urgent Care Centres, Community Health Services and Hospitals. We consistently provide a proven consultative service to our candidates and clients within this diverse, exciting and rapidly developing sector.Typically we place GP Partners, GPwSI and GP’s, RGN’s, Nurse Advisors, Advanced Nurse Practitioners, Prescribing Pharmacists, Medical Directors and all types of associated support staff throughout the healthcare practice/hospital environment.


Healthcare & Medical Devices – Working with a wide array of leading Healthcare & Medical Device organisations, we provide retained or contingent solutions, within Head office functions i.e. Sales, Marketing, HR, Professional Services, Product / Category Management and Regulatory along with Regional Sales and Operations.

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Loan Offers

What is the loan for?

Our IT/Web infrastructure is all interconnected and in order to update, requires all three components to be replaced simultaneously. We are currently using out of date technology, which is expensive, does not integrate with 3rd party applications and makes managing the operation significantly more challenging and time consuming than necessary, from a financial perspective this restricts our growth and development of new revenue streams.


Database + Website – Current database is over 15 years old, is server based and extremely dated when compared with the latest cloud technology, impossible to modify due to new developments being stopped with this version now only being supported by technical support. This significantly affects performance and efficiencies across the business on a daily basis. Our website platform is extremely dated, it is not a CMS site or mobile responsive which is a massive problem given our email campaigns have an 80% open rate on mobile devices and we consistently have over 300+ live vacancies! it is impossible to modify and react quickly to new vacancies or opportunities and given that this is so fundamental in today’s market this is frustrating and challenging and is preventing us from capitalising on situations we should be taking advantage of.


In addition, this has a negative impact on SEO search returns, the whole platform is not responsive, which is not the positive perception from a client/candidate perspective we require, with the benefit of tracking nowadays and given 80% + of our email open rates are opened using mobile devices, this does not convert to new applications, which we have seen a significant reduction in over the last few years, this is something we need to rectify. This does not allow us to market the business effectively through email marketing and website initiatives in order to raise awareness of new opportunities, key developments and business updates. In order for us to continue being recognised as a proven solutions provider, this needs to be actioned immediately.


Hosted solution – We still operate from an expensive and outdated hosted environment, which we continue to suffer from, with ongoing connectivity and downtime issues impacting on a regular basis, this affects the whole business and is probably the main frustration we consistently have.
Given how competitive, dynamic and demanding the healthcare sectors we operate in have now become, this cost-effective upgrade would subsequently ensure, we are much more attractive, from both an internal, recruitment and staff retention perspective as well as an external, new client and candidate attraction perspective.

Why consider investing?

In addition to the obvious monthly savings we will achieve, by migrating onto the new platform, we will receive significant cost benefits by saving from unnecessary costs, such as hosting, licenses, firewalls, hardware and server upgrades which we will still need to pay if we do not move into the cloud, anticipated saving would be circa 4/5K per year, so if we add that to the below:

Current Costings Per Month – £2250
Proposed Costings Per Month – £1000
Monthly and Annual Savings – £1250 = £15000
Plus the £5K per annum mentioned in the above paragraph

Purely from a financial perspective, this would save the business circa £100,000 over 5 years, this does not include the obvious benefits we outlined above, which would significantly improve cash flow, business efficiencies, operational performance and ultimately profitability.

Growth Proposal –
Flame Executive, is the specialist Executive Division of Flame Health Associates LLP. Operating as both a Traditional & Online Executive Recruitment Consultancy, Flame Executive has a proven track record of providing efficient and effective executive solutions. given the challenges over the last couple of years, this has been difficult to grow, however, with a revised change of roles between David and myself, we are confident of this becoming a more consistent source of revenue across our existing and growing network. We would provide interim, contract and retained solutions, fees would be between 15 and 25% which would significantly improve cash flow into the business. This would be a confidential service for our diverse range of international clients operating within the health, pharmaceutical, clinical, medical, care and retail sectors Flame Health Practice Sales / Joint

Venture Partner and Franchise Opportunities – We have direct access and long term relationships with a wide range of organisations and individuals that are constantly looking for new Practices or Joint Venture Partnership Opportunities in order to add to their existing portfolio or looking for
their first practice. Conversely, we have a wide array of business owners that are looking to Sell their Practice, Sell Shares in a Joint Venture Partnership or listen to proposals on how to exit, or alternatively sell and potentially stay within their existing business in some capacity.

Dentistry – This is a sector that has been neglected over recent years, following ongoing changes within the business, Optometry, Pharmacy and Medical Devices have been the three main areas that we have needed to concentrate on and this has been justifiable, given recent performance. That said, with the recruitment of an additional person and part-time employees increasing days, this would allow a new approach encompassing, traditional recruitment along with Executive and Practice Sales utilising the new platform to re-approach our existing client and candidate data we have now imported into our email platform

Overall with the immediate costs savings, and vastly improved infrastructure, this proposal would help us change the way we do business and move us onto our next stage of growth.

Disclosures

1) The borrower is a limited liability partnership (LLP), not a limited company. Please bear this in mind when reviewing the finances tab, as headings such as 'shareholder funds' are not strictly correct in the case of an LLP, which has members, not shareholders. Lenders are encouraged to download and review the full accounts which are provided.

2) The borrower is providing an equitable charge as security. An equitable charge functions largely in the same manner a legal charge would and holds similar rights in relation to securing the debt against the charged property. However, there are a few differences that lenders should be aware of. Firstly the charge will not be registered at the Land Registry. This means that our consent will not be required should the owner look to take an extra mortgage or remortgage the property. Secondly, we would not have a direct power of sale or possession but would instead have the right to apply to the court to obtain an order for sale based on the existence of the equitable charge. Thirdly, in insolvency, it would be up to the Official Receiver or Bankruptcy Trustee to verify the creation, application and enforceability of the equitable charge.

Security

This loan will be secured by way of a Personal Guarantee, a Debenture and an Equitable Charge.

A PG will be provided by Mr Scott Liversidge. Scott has an estimated net worth of £200,000. This is derived from his joint-ownership of his domestic residence and three investment properties. His domestic residence has an estimated value of £500,000 with £200,000 estimated equity. The investment properties have a combined value of £500,000 with an combined estimated equity of £310,000. The value of the PG has been capped at £50,000 on the summary page.

A debenture over the company will also be provided. As there is an existing ranking charge in favour of the business' factoring company, this charge has not been assigned any material realisable value. It will however convey the usual secured creditor status and the ability to appoint administrators should the loan default and this be deemed appropriate.

Finally, an equitable charge will be taken over one of Scott's investment properties. The property has an estimated value of £240,000 and an estimated £90,000 equity to be captured by our equitable charge. For more information on the difference between an equitable charge and a legal charge, please see the listing disclosure above.