Quality Floors (Pvt) Ltd is a leading flooring specialist in Sri Lanka, focused on delivering professional flooring solutions for industrial & commercial clients. Quality Floors is Tempest’s first standalone CPSU engagement, where we actively worked together with the management of Quality Floors in boosting the bottom-line of the company, through improving the efficiency and delivery of projects, working capital and cash management practices, and building a healthier balance sheet whilst exploring inorganic expansion opportunities.
We believe our biggest value addition was to see the company’s old procedures and processes through a fresh set of eyes. For instance, Tempest implemented a monthly raw material and sales inventory tracking system, and a receivables tracking system whilst also restructuring debt, paying down expensive facilities and streamlining banking relationships. These changes to working capital practices significantly improved cash generation as inventory stockpiles and debtors significantly reduced and payments made to suppliers were better matched with collections, leading to lower net debt levels and better liquidity.