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interpathadvisory.com INTRODUCING INTERPATH
Contents:
Welcome 4
Meet the Managing Director Team 6
About Us 12
Sectors 20
Services 82
People 132
WELCOME
WELCOME TO ALL OUR CLIENTS,
COLLEAGUES AND FRIENDS,
FROM THE PAST AND IN THE FUTURE.
It gives us tremendous pleasure to introduce you to the birth of an exciting new
entrant to the business advisory market across the UK and very soon, across the globe.
Welcome to Interpath Advisory! What can you expect from your We will also draw upon the broader
Interpath team going forward? advisory expertise and international Blair Nimmo
Born on 4th May 2021, yet already 50 network of certain Big 4 firms under the Chief Executive Officer
years old. We launch as the UK’s largest In many respects, you can expect terms of master services agreements.
privately-owned independent turnaround ‘business as usual’.
and restructuring business. Our alliances, new and old, will provide
→ The same top-quality professionals huge network reach and access to insights,
We bring with us the very best of our Big 4 working as hard as ever to help you whilst also increasing options and flexibility
legacy and most of our people will be well overcome the challenges you face. for adapting to individual scenarios.
known to you and the wider market. With → The same expansive spectrum of service Mark Raddan
our new agility, fresh independence and offerings across business performance There is a lot to share with you and Head of Advisory
strong financial backing from our sponsors improvement, operational restructuring, our launch brochure should hopefully
H.I.G. Capital LLC, we are also excited to turnaround, M&A, financing, complex give you a little taster of that.
start introducing you to many new faces who financial restructuring and insolvency.
share our vision for what we will become. → The same market-leading sector model In the following pages you’ll find plenty of
bringing you expertise and insights. information on our new structure, our unique
We truly believe we’ll be able to offer something → The same geographical coverage across sector coverage model, our huge range of
different. To provide the answers to challenges the entirety of the UK and in every services and solutions and an introduction Will Wright
previously thought impossible. The future is part of the market, big and small. to our greatest assets, our people. Head of Restructuring
bright with many twists and turns to be explored,
but we look forward to navigating what’s next. These aspects of our business are engrained. On behalf of the whole team, welcome
In our DNA. That’s what makes us unique. to Interpath. We all look forward to
In the current economic climate you, like us, catching up with you soon.
will recognise the enormous challenges facing However, the Interpath story is just beginning
business and financial stakeholders alike as and our team is really excited to step forward Kind regards,
we all plot a path forward to a new reality. on our new journey. In doing so we are taking
the opportunity to implement a number of new
As the largest independent team in the top-tier commercial alliances and service arrangements
of the market we look forward to supporting all with high quality professional service firms,
our clients in overcoming the challenges ahead. both here in the UK and internationally.
Welcome Interpath Advisory Welcome
4 5
Meet the Managing Director Team
CITY & INTERNATIONAL GROUP SPECIAL SITUATIONS GROUP
Andrea Jakes David Pike David Standish Ed Boyle Craig Masters Dominic Carter Gareth Williams Graham Lawes
London London London London London London London London
+44 203 989 2660 +44 203 989 2705 +44 203 989 2706 +44 203 989 2712 +44 203 989 2698 +44 203 989 2710 +44 203 989 2725 +44 203 989 2919
andrea.jakes david.j.pike david.standish ed.boyle craig.masters dominic.carter gareth.williams graham.lawes
@interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com
James Bennett Jim Tucker Kristina Kicks Michael Tagg James Fagan Jason Lawrence John Miesner Mark Raddan
London London London London London London London London
+44 203 989 2752 +44 203 989 2767 +44 203 989 2794 +44 203 989 2820 +44 203 989 2754 +44 203 989 2760 +44 203 989 2769 +44 203 989 2812
james.bennett jim.tucker kristina.kicks michael.tagg james.fagan jason.lawrence john.miesner mark.raddan
@interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com
Mike Pink Richard Heis Nick Smith Roraigh Kirkness Stefan Masheder Suren Thadani
London London London London London London
+44 203 989 2819 +44 203 989 2858 +44 203 989 2833 +44 203 989 2863 +44 203 989 2886 +44 7833 478097
mike.pink richard.heis nick.smith roraigh.kirkness stefan.masheder suren.thadani
@interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com
Meet the Managing Director Team Interpath Advisory Meet the Managing Director Team
6 7
Meet the Managing Director Team
SCOTLAND LONDON & SOUTH EAST
Alan Flower Alistair McAlinden Blair Nimmo Geoffrey Jacobs Claire Winder Neil Gostelow Nick Holloway Steve Absolom
Glasgow Edinburgh / Glasgow Edinburgh / London Aberdeen / Glasgow London London London London
+44 141 648 4282 +44 131 385 7911 +44 131 385 7912 +44 141 648 4302 +44 203 989 2696 +44 203 989 2825 +44 203 989 2831 +44 203 989 2887
alan.flower alistair.mcalinden blair.nimmo geoffrey.jacobs claire.winder neil.gostelow nick.holloway steve.absolom
@interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com
NORTH PENSIONS
Andrew Stone Howard Smith James Clark James Lumb Will Wright Chris Flood David Clarke Paul Birrell
Manchester Leeds Leeds Newcastle London London London Manchester
+44 161 529 8832 +44 113 521 7524 +44 113 521 7525 +44 191 933 4545 +44 203 989 2920 +44 203 989 2692 +447941 215517 +44 161 529 9006
andrew.stone howard.smith james.clark james.lumb will.wright christopher.flood david.clarke paul.birrell
@interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com
MIDLANDS & SOUTH WEST TAX RISK & LEGAL FINANCE
Kenny McKay Rick Harrison Andrew Burn Chris Pole Gavin Little Libby Elliott Nigel Carr
Leeds Manchester Birmingham Birmingham London London Managing Director
+44 113 521 7533 +44 161 529 9013 +44 121 817 8593 +44 121 817 8598 +44 203 989 2728 +44 203 989 2803 +44 203 989 2835
kenny.mckay rick.harrison andrew.burn chris.pole gavin.little libby.elliott nigel.carr
@interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com @interpathadvisory.com
Meet the Managing Director Team Interpath Advisory Meet the Managing Director Team
8 9
In this section:
About Us 12
Operating model 13
Leadership Team 14
Organisation Structure 16
Regional Mid-Market Team 17
Special Situations Group 18
City & International Group 19
ABOUT US
About Us
Agile and independent. A broad multi-service
advisory practice. The largest ‘boutique’ in the UK.
And still with global Big 4 access and expertise.
Interpath Advisory is the UK’s largest Born from the UK’s leading Big
top-tier independent turnaround 4 restructuring and turnaround
and restructuring business serving practice, Interpath Advisory was
national and international markets. It formed to allow the very best
has more than 40 Managing Directors professionals in the market do what
and in excess of 40 Directors leading they do best in an agile, independent
a professional client-facing staff and conflict-free setting.
of nearly 500 across the country.
With this proud heritage, Interpath
The group advises companies, has a 50-year track record of
lenders, equity holders and a developing innovative approaches
wide range of other stakeholders to complex restructuring
including Government, regulators problems both here in the UK, and
and pension trustees to navigate internationally across the globe.
the issues associated with economic
disruption and to overcome financial
and operational challenges.
Operating model
Flexible, agile and conflict-free. Big 4 expertise
and network access. We combine the best of our
past with a bright new independent future.
With its new independence, services agreements, contracted at
Interpath is taking the opportunity arms-length commercial terms.
to implement a number of new
commercial alliances and service This will provide even greater
arrangements with high quality network reach and access to
professional service firms, both insights, whilst also increasing
here in the UK and internationally. options and flexibility for managing
any potential conflict scenarios
Interpath will specifically draw upon
the broader advisory expertise and
international network of certain Big
4 firms under the terms of master
About Us Operating model
12 13
Leadership Team
Market leading, internationally renowned. The pathfinders
and co-pilots leading the Interpath business forward.
John Connolly Blair Nimmo Libby Elliott Nigel Carr
Chair of the Board Chief Executive Officer & Board Member Head of Risk & Legal Chief Financial Officer
Our executive leadership team reports Blair Nimmo, former UK Head of Libby Elliot, Head of Risk and Legal, Nigel Carr, Chief Financial Officer, is a
to the Board of Interpath Ltd, chaired Restructuring and Global Head of is a qualified lawyer with over 20 highly experienced Chief Restructuring
by global professional services Insolvency at KPMG, is Interpath’s Chief years’ experience. Previously Head Officer, Finance Director and former
veteran John Connolly. John Connolly Executive Officer. As well as leading of Restructuring Risk at KPMG, veteran of KPMG’s Special Situations
is the former CEO of Deloitte UK the strategic direction of the Interpath Libby has also been a partner at Group. Turning his client-facing
and Chairman of the Deloitte Global business, Blair also takes an active two city law firms, specialising in organisation skills and experience to
Board of Directors and has chaired a oversight role in our largest insolvency restructuring and insolvency. Interpath’s own operations, Nigel will
number of PE-backed companies. He assignments and in managing some of ensure the business navigates its own
currently chairs G4S PLC and previously our largest client relationships. path with stability and confidence.
chaired AMEC Foster Wheeler PLC.
Mark Raddan Will Wright Carol Mote
Head of Advisory Group Head of Restructuring & Board Member Head of People & Talent
& Board Member Will Wright, former Head of Regional Carol Mote, Head of People and
Mark Raddan, former Global Head of Restructuring at KPMG, is a Managing Talent, is an experienced Global HR
Turnaround at KPMG, is a Managing Director and Board Member, with Director and HR M&A specialist, with
Director and Board Member, holding responsibility for Interpath’s UK mid- a fantastic track record and passion
responsibility for Interpath’s large market and regional practice. Will is a for creating and building employee
corporate and international market. special situations M&A specialist, leading experience and engagement. Carol
Mark specialises in a wide range of many of Interpath’s most high-profile joined Interpath from Deloitte and
operational restructuring and business assignments, most notably in the Retail previously held senior roles at Simply
performance improvement capabilities and Consumer Markets segments. Health, Centrica, Unilever and JP Morgan.
and is a seasoned turnaround advisor
to stressed and distressed businesses.
Leadership Team Interpath Advisory Leadership Team
14 15
Organisation Structure Regional Mid-Market Team
Three groups collaborating dynamically as one The largest and most complete regional coverage team in the UK market.
team across the market. Regional and international. Delivering all aspects of the Interpath service capability. Local to you.
Large corporate and mid-market. No gaps.
Interpath is a large group of professionals, all Supporting the bedrock of the UK economy is our through underperformance and turnaround
experts in their field, who combine to offer long- national mid-market practice. The team boasts scenarios, to stress, distress and insolvency.
lasting support to our clients. We stand shoulder in excess of 300 client-facing professionals with
to shoulder with you, and each other. a combined Managing Director and Director team A key specialism is Interpath’s ‘Early Options’
of more than 40 across the UK. At a regional level, solution: a bespoke, structured process which
We do this with all hands on deck, bringing the team is segmented into four main groups. helps businesses explore their sale, refinance and
the best of Interpath to each client scenario. investment options in an accelerated timescale.
We collaborate and innovate across a flexible The team’s expertise spans the full range of
and dynamic organisation structure that spans Interpath’s services for scenarios across the business Will Wright leads the Regional Mid-Market practice
markets, regions, sectors and channels. spectrum, from business performance improvement nationwide, as well as the London & South team locally.
At its simplest level, we organise ourselves across three
large teams aligned to market segment and capability.
LONDON & SOUTH EAST NORTH
Regional Mid-Market Group
Business advisors with the skills and capabilities Will Wright Kenny McKay
to deliver what you need, where you need it – Will’s Managing Director group in In the North of England Kenny McKay
fast. Find us next to you, across the UK. the region numbers 4 individuals leads our regional team from Leeds,
across core restructuring capabilities: while Rick Harrison heads up our second
Steve Absolom, Neil Gostelow, regional base in Manchester. Kenny and
Special Situations Group Claire Winder and Nick Holloway. Rick are supported by a wider Managing
Specialising in operational and financial The Managing Director team also extends to a number Director group of five that comprises
restructuring projects for large international of key specialisms including pensions advisory (Dave Andy Stone, Howard Smith, James
corporate clients and funding institutions. Clarke and Chris Flood) and tax (Gavin Little). Clark, Paul Birrell and James Lumb.
City & International Group MIDLANDS & SOUTH WEST SCOTLAND
High profile market leaders in large, complex and
international financial distress and insolvency scenarios. Chris Pole Alistair McAlinden
The Midlands and South West In Scotland the team is led by Alistair
Managing Director team is led by McAlinden, and a wider Managing
Chris Pole in Birmingham, Director group comprising Alan Flower
alongside Andrew Burn and a and Geoff Jacobs who together span
wider Director group of 7. our team and operations across
Glasgow, Edinburgh and Aberdeen.
Blair Nimmo continues to hold an
active presence in the region too.
Organisation Structure Interpath Advisory Regional Mid-Market Team
16 17
Special Situations Group City & International Group
Large corporate and international specialists in operational restructuring Market-leading specialists bringing innovative solutions to large,
and turnaround, financial restructuring, and financial services advisory. complex and international financial distress and insolvency scenarios.
The London-based Special Situations Financial Restructuring The City and International Group based in London Financial Services Advisory
Group (“SSG”) specialises in both Managing Directors Gareth Williams, James Fagan and specialises in large, complex and international financial In Financial Services, Ed Boyle, James Bennett and
operational and financial restructuring Graham Lawes lead the complex financial restructuring distress and insolvency. Its Managing Director group of Mike Pink lead a team which specialises in the
projects for large corporate and capability, serving both the corporate and financial ten boasts a number of market-leading specialists. winddown and resolution (solvent & insolvent) of
international clients and funding stakeholder community as well as government institutions. financial services institutions, whilst Michael Tagg and
institutions. The SSG team is led by Mark Core Team his team lead our insurance advisory capability.
Raddan and a further Managing Director Financial Services Advisory In the Core team, Managing Directors Jim Tucker, David
group of eight. Managing Directors Nick Smith, Jason Lawrence and Stefan Pike, Richard Heis and Andrea Jakes are typically handling Contentious Insolvency & Asset Recovery
Masheder lead the financial services advisory capability some of the largest and most complex insolvency The Contentious Insolvency and Asset Recovery team is led
Operational Restructuring & Turnaround focused on UK and international stressed and distressed cases in the market. The insolvencies of Intu Properties by Managing Directors David Standish and Kristina Kicks.
Alongside Mark, the operational restructuring capability situations. Our market-leading team provides hands- plc, Calon Energy, Thomas Cook and Monarch Airlines
group is led by Managing Directors Dominic Carter, on practical support, in both an executive or advisory are just a few of the cases currently being overseen Corporate Simplification
Craig Masters, Roraigh Kirkness and Suren Thadani. capacity, to institutions, regulators, lenders and funds. by insolvency practitioners within the team. The specialist Corporate Simplification team is
Cash and working capital, profit optimisation, strategy led nationally by Director Nick Timpson.
and turnaround are all key specialisms delivered to a
mix of large blue-chip clients and the public sector.
Special Situations Group Interpath Advisory City & International Group
18 19In this section:
Sector Coverage 22 Industrials Segment 52
17. Automotive 54
Consumer Markets Segment 24 18. Aerospace & Defence (Private Sector) 55
1. Retail 26 19. Industrial Manufacturing 56
2. Leisure & Hospitality 27
3. Food & Drink 28 Public Sector Segment 58
20. Central Government 60
Energy & Natural Resources (ENR)
Segment 30 21. Justice, Security & Defence 61
4. Power & Utilities 32 22. Education 62
5. Oil & Gas 33 23. NHS 63
6. Mining & Metals 34
7. Chemicals 35 Services Segment 64
24. Professional Services 66
Financial Services (FS)
Segment 36 25. Business Services 67
8. Bank & Non-Bank Lenders 38
9. Insurance 39 Technology, Media & Telco (TMT) Segment 68
10. Brokers & Asset Management 40 26. Technology 70
11. Consumer Finance 41 27. Media 71
28. Telecoms 72
Health Segment 42
12. Private Healthcare 44 Transport & Logistics (T&L) Segment 74
13. Life Sciences & Pharmaceuticals 45 29. Land Passenger Transport (LPT)
76
30. Civil Aviation 77
Property Segment 46 31. Shipping & Ports 78
14. Building & Construction 48 32. Road Freight, Logistics and Post 79
15. Real Estate 49
16. Infrastructure 50 Other 80
33. Not for Profit 81
SECTORSSector Coverage Current Sector Rating Summary
Whichever sector you serve, Interpath can serve you. We have Sector
SECTORrating
WHEELkeyKEY
deep specialist insights leveraging our unique sector coverage Very Low
model and can add value to whatever scenario you are facing. SECTOR WHEEL KEY
Low
Very Low Moderate
Low High
Our Approach to Sectors Moderate
Very High
High
At Interpath, we have a well-established sector coverage assign them with a rating of 1 (very low) to 5 (very high)
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model that leverages our scale as the largest independent based on the extent of the challenges being faced and
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For more information Scott Farquhar
Our sector coverage model is managed by Scott Farquhar, Director
Head of Sales & Business Development at Interpath Advisory. scott.farquhar
For more information about this, please get in touch or @interpathadvisory.com
alternatively visit our website: interpathadvisory.com/sectors +44 141 648 4352
Sector Coverage Interpath Advisory Sector Coverage
22 23Consumer Markets Segment
The Consumer Markets segment at Dominic Carter
Managing Director
Interpath is led by Managing Director,
dominic.carter
Dom Carter, based in London. Dom has @interpathadvisory.com
spent much of his career working on +44 203 989 2710
business improvement and operational
restructuring mandates for a range of
clients from large fashion retailers, to the
major UK supermarket chains, independent
grocers, and all facets of the supply chain.
Across the Consumer Markets segment
our team tracks 3 specific sectors:
Retail Anthony Tan
Retail has had the Interpath team’s highest level Associate Director
of sector focus for many years now with our client anthony.tan
experience stretching across all aspects of the @interpathadvisory.com
market and indeed our own service spectrum. Dom +44 203 989 2673
Carter leads the Retail sector for Interpath alongside
Associate Director Anthony Tan, based in London.
Leisure & Hospitality Will Wright
Leisure & Hospitality is a diverse and wide-ranging sector Managing Director
which spans casual dining, bars and nightclubs, travel and will.wright
tourism, entertainment venues and sports and recreation. @interpathadvisory.com
It is led as a current high priority sector for Interpath +44 203 989 2920
by Managing Director Will Wright, based in London.
Food & Drink Steve Elsigood
Food & Drink, which focuses on both the producers Associate Director
and the supply chain, is led by Associate Director steve.elsigood
Steve Elsigood based in Birmingham @interpathadvisory.com
+44 203 989 2889
Consumer Markets Segment Interpath Advisory Consumer Markets Segment
24 251. Retail 2. Leisure & Hospitality
VERY HIGH VERY HIGH
COVID-19 has impacted a sector already grappling with changing consumer The COVID-19 pandemic continues to place unprecedented stress
behaviour, increased costs and margin erosion, but opportunities remain. across a sector already facing a number of headwinds.
Sector trends & challenges Sector trends & challenges
Shift to online Managing reopening
Making an efficient and profitable switch differentiating with a distinctive and As restrictions unwind and the sector some operators may find the ‘new normal’ no
to online or multi-modal retailing requires compelling customer proposition. gradually reopens, managing costs whilst longer aligns with their previous business model.
a wholesale operational transformation consumer demand remains fragile will pose
- from sales and marketing through to Reputational risk a significant challenge for many operators. Debt burden
distribution, logistics and service. Consumers are increasingly influenced by The sector was already grappling with
a range of factors throughout the retail Government support high debt levels even before the start of
Innovation remains critical supply chain, from ethical sourcing to The sector has been a major beneficiary of the pandemic. Additional lending through
In a post-pandemic trading environment, biodegradable packaging. Managing these government support throughout the pandemic. COVID-19 may prove difficult to service,
retailers will need to focus on policies requires insight and control. As these schemes taper away through 2021, especially if interest rates increase.
Sector rating profile Sector rating profile
The high volume of restructuring activity has operators into financial stress and distress.
been more visible in retail in recent years However, those businesses which have adapted The leisure and hospitality sector in the UK is very diverse and distress levels across the sector have leapt upwards with
than perhaps any other sector. It has been quickly have seen some strong trading results. certain parts of it have been in a state of turbulence for many many businesses now entirely reliant upon extensive
under significant financial stress long before years now. Casual dining chains have been grappling with government support to stay afloat. As we look ahead the
the arrival of COVID-19, as the steady shift to For our latest analysis on the Retail sector visit: ever-changing consumer tastes, whilst changes in technology potential for another lost year in also too real, particularly in
online, increased operating costs and subdued interpathadvisory.com/sectors/retail and consumer demand have seen some traditional leisure the travel and tourism sub-sector. With unprecedented levels
economic growth placed pressure on the attractions struggle to remain relevant. That said, a number of debt now needing to be repaid, this looks set to devastate
bottom line. COVID-19 has accelerated and of sub-sectors were in good health prior to the pandemic, many operators who have managed to hang on this far.
exacerbated trends and issues already gripping not least gym operators who were expanding rapidly across
the sector. It has pushed yet more fragile the UK. Perhaps more than any other section of the economy, For our latest analysis on the Leisure
COVID-19 has hit hard, in many cases effectively shutting & Hospitality sector visit:
down all operations for large periods of time. Financial interpathadvisory.com/sectors/leisure-hospitality
Consumer Markets Segment - Retail Interpath Advisory Consumer Markets Segment - Leisure & Hospitality
26 273. Food & Drink
HIGH
Covid-19 has created new pressures across the sector, particularly
for those companies exposed to the food service industry.
Sector trends & challenges
Supply chain issues
Supply chain disruption is a risk, with labour COVID-19 variants. Tight cost control is vital
restrictions, logistical challenges and greater in order to manage liquidity and margins.
administrative requirements potentially
increasing production costs. Supply chain failure Changing consumer landscape
risk requires businesses to build resilience. The increasing importance of ethical, social
and environmental considerations and the
Uncertain outlook & liquidity impact of COVID-19 are likely to lead to lasting
The short-term outlook, especially for those in shifts in consumer behaviour. Many will need to
the food service sector, remains challenging amend their business model in order to grow.
with ongoing restrictions and the risk of new
Sector rating profile
Even prior to arrival of COVID-19 disruption intensity of the challenge quite significantly
Food & Drink Manufacturers (FDM) were for those supplying a greater balance of
under mounting pressure to adapt to Brexit- their output to the food service industry.
driven complexity in the supply chain and
we had been tracking a moderate level of For our latest analysis on the
restructuring activity across the board. Food & Drink sector visit:
Through the course of 2020 and now 2021 interpathadvisory.com/sectors/food-drink
the impact of the pandemic has raised the
Consumer Markets Segment - Food & Drink 3. Food & Drink
28 29Energy & Natural Resources (ENR) Segment Across the ENR segment our team
closely tracks 4 specific sectors:
The ENR segment at Interpath is led by James Fagan
Managing Director
Managing Director, James Fagan, based in
james.fagan Power & Utilities James Camp
London. James is a Financial Restructuring @interpathadvisory.com The sector spans generation, distribution and supply of Director
specialist who has advised a wide variety of +44 203 989 2754 electricity and gas, as well as multiple utility providers james.camp
including water and waste. Certain aspects of the UK supply @interpathadvisory.com
large corporates and financial stakeholders market have seen a notable rise in restructuring activity +44 203 989 2753
in scenarios across the ENR segment. in recent years and much of our focus has been driven by
sector lead James Camp, a Director based in London.
Oil & Gas Matthew Little
Oil & Gas is a highly cyclical sector that endures Director
significant market volatility as a long-term feature. As matthew.little
a result we see a fairly constant flow of restructuring @interpathadvisory.com
activity spanning both Exploration & Production and +44 203 989 2816
Oilfield Services and have built up extensive experience
over many years. Matt Little, a Director and financial Geoffrey Jacobs
restructuring specialist in Interpath’s London office Managing Director
leads the sector for us with support from Managing geoffrey.jacobs
Director Geoff Jacobs who leads our team in Aberdeen. @interpathadvisory.com
+44 141 648 4302
Mining & Metals Lucy Brocklebank
Mining and metals is a diverse sector that has seen demand Associate Director
for certain resources consumed by other sectors fall quite lucy.brocklebank
dramatically as a result of COVID-19. The steel sector in @interpathadvisory.com
the UK in particular has seen a number of high-profile +44 203 989 2807
restructurings recently and the Interpath team has been
embedded in much of it. The sector is led within Interpath
by Associate Director Lucy Brocklebank in London.
Chemicals Sam Kirkwood
The chemical sector is dominated by large multinational Associate Director
corporations supplying a diverse range of products sam.kirkwood
that touch nearly every aspect of modern life. The team @interpathadvisory.com
at Interpath has a long history of supporting some of +44 203 989 2867
the largest players in the global market in business
performance improvement and operational restructuring, Kenny McKay
often focusing on cost efficiency work. Sam Kirkwood, Managing Director
Associate Director in London leads the sector for Interpath kenny.mckay
with support from Kenny McKay, Managing Director in Leeds. @interpathadvisory.com
+44 113 521 7533
Energy & Natural Resources (ENR) Segment Interpath Advisory Energy & Natural Resources (ENR) Segment
30 314. Power & Utilities 5. Oil & Gas
HIGH HIGH
Evolving business models, consumer tastes, technology and regulation COVID-19 has reduced demand for oil products, whilst the push to achieve
combined with wholesale price volatility means weaker players could struggle. net zero carbon targets will prompt a structural shift in the sector.
Sector trends & challenges Sector trends & challenges
Regulatory requirements Reduction in demand
New rules aimed at supporting consumers, marginal supply, and even efficient coal plants During the pandemic, daily demand for crude radically scaling back use of fossil fuels. New
improving infrastructure and enhancing became uncompetitive on account of cheap gas oil has decreased by c.10% from 2019 levels. policies include investment in clean hydrogen,
environmental protection have the potential Although global economies are starting CCS, nuclear energy R&D, and wind farms.
to limit price rises, increase operating Decarbonisation to recover, forecast demand in 2021 is not
costs or increase sanction risk. Falling costs of renewable generation are helping expected to even return to 2017 levels. Cost cutting & liquidity
decarbonise the electricity sector. Ambitious With continued investment in the green
Power demand and mix policies are likely to accelerate following Renewable Energy Policy energy transition, operators will need to
Restricted activity and the subsequent recession COP26. Potential for hydrogen to help meet the Many national governments have recently continue identifying efficiencies to protect
saw material reductions in power demand. needs of a low/zero-carbon energy system. announced plans to reduce emissions by bottom line and bolster liquidity.
Losing system load impacted cost and source of
Sector rating profile Sector rating profile
The stress level in the sector has increased in cost challenges on water companies and Market volatility is the long term ‘norm’ for the recover to pre-2020 levels for some time and this
recent years with a wave of failures amongst slashed their permitted returns on capital. oil and gas sector and it has weathered many places familiar pressures on cost and liquidity.
challengers in the energy supply space, the substantial downturns, most severely in 2015/16
mothballing of some CCGT generation capacity For our latest analysis on the in recent years. The industry has used to the For our latest analysis on the
and coal plant economics becoming ever more Power & Utilities sector visit: pandemic as a catalyst to change as it moves Oil & Gas sector visit:
challenging versus current forward curves. In interpathadvisory.com/sectors/power-utilities forward on a longer structural transition to interpathadvisory.com/sectors/oil-gas
the water sector, PR19 has imposed significant ‘net zero’. It is clear that oil demand may not
Energy & Natural Resources (ENR) Segment - Power & Utilities Interpath Advisory Energy & Natural Resources (ENR) Segment - Oil & Gas
32 336. Mining & Metals 7. Chemicals
HIGH MODERATE
Metal production costs will remain high in Europe compared to the global The Brexit trade deal eased some uncertainty, however additional regulatory
market. Increased environmental regulatory pressure is likely to raise costs. cost and industry overcapacity across Europe places pressures on operators.
Sector trends & challenges Sector trends & challenges
Regulatory pressure Trade deal Supply Chain Resilience
The sector is likely to face increased sites with more expensive cost bases may The Brexit trade deal announced in Both chemicals manufacturers and their
scrutiny from governmental bodies, suffer. Respite may come from a desire December 2020 removed much uncertainty customers are looking to improve the
customers, environmental groups and end from some customers to shorten some across the sector, although duplication of resilience of their supply chains.
users. Further improving environmental supply chains to improve resilience. regulatory costs will affect profitability.
and ethical standards will be a continued
focus for responsible operators. Accessing new materials Overcapacity
There will be exponential demand in the Overcapacity across Europe continues
Global competition next few years for raw materials used to depress prices and margins.
The metals commodity markets are in battery production, such as cobalt.
highly competitive, and less efficient Obtaining this safely will be challenging.
Sector rating profile Sector rating profile
We have seen the stress level of the sector The sector has come under increasing strain
rise in recent years as global supply and over the past few years, as Brexit and capacity
demand becomes more volatile. The price of issues placed pressures on margins. The sector
many commodities fell during COVID-19 but has responded effectively however, and we
recovered strongly as supply was controlled. are seeing a gradual reduction in stress.
For our latest analysis on the For our latest analysis on the
Mining & Metals sector visit: Chemicals sector visit:
interpathadvisory.com/sectors/mining-metals interpathadvisory.com/sectors/chemicals
Energy & Natural Resources (ENR) Segment - Mining & Metals Interpath Advisory Energy & Natural Resources (ENR) Segment - Chemicals
34 35Financial Services (FS) Segment Across the FS segment our team
closely tracks 4 specific sectors:
The Financial Services segment at Ed Boyle
Managing Director
Interpath is led jointly by Managing
ed.boyle Banking & Non-Bank Lenders Jason Lawrence
Directors, Ed Boyle and Nick @interpathadvisory.com Banking and non-bank lenders is a particularly Managing Director
Smith, both based in London. +44 203 989 2712 active sector with significant new operational jason.lawrence
challenges and pressures present currently, derived @interpathadvisory.com
Ed has led numerous high-profile FS engagements, including largely from COVID-19 funding demands in the wider +44 203 989 2760
Special Administrator of MF Global, Scheme Supervisor for Nick Smith economy. Our focus on this sector led by Jason
Welcome FS and Instant Cash Loans, and Administrator of Managing Director Lawrence, a Managing Director based in London.
Curo. Nick has extensive experience managing the workout nick.smith
of Non-Performing Loan (NPL) portfolios and single-name @interpathadvisory.com
distress credits across Europe, Russia and the Gulf region. +44 203 989 2833 Insurance Michael Tagg
Since 2015 he has held an executive role leading the Insurance is a sector which has seen its public Managing Director
resolution of a €18bn NPL portfolio at the Bank of Cyprus. profile rise quiet significantly as a result of the michael.tagg
COVID-19 pandemic whilst it also continues to @interpathadvisory.com
grapple with increasing regulatory attention. We +44 203 989 2820
have a specialist insurance team as part of our
wider FS offering and Managing Director Michael
Tagg based in London leads the team for Interpath.
Brokers & Asset Management Rob Spence
The brokers and asset management sector has Director
performed relatively well during the COVID-19 robert.spence
period. Many households have increased savings @interpathadvisory.com
rates during lockdown and, in an ultra-low interest +44 203 989 2861
rate environment, many consumer investment
products have attracted strong demand,
particularly with the recent recovery in stock
markets. Our activity and focus on the sector is
led by Director Rob Spence based in London.
Consumer Finance Alex Watkins
Consumer finance is likely to feel the impact of Associate Director
COVID-19 more increasingly as 2021 progresses alex.watkins
as demand for discretionary purchases falls and @interpathadvisory.com
levels of bad debt will rise whilst the risk of future +44 203 989 2658
mis-selling claims in a post-COVID landscape are
front of mind. Alex Watkins, Associate Director
in London leads the sector for Interpath.
Financial Services (FS) Segment Interpath Advisory Financial Services (FS) Segment
36 378. Bank & Non-Bank Lenders 9. Insurance
HIGH HIGH
Low interest rates, high NPLs, legacy conduct liabilities Increasing calls for transparency from regulators will continue to place
and new regulation created a complex recovery path post- additional burdens on insurers grappling with COVID-19 impacts.
Global Financial Crisis, further threatened by COVID-19.
Sector trends & challenges Sector trends & challenges
Regulatory capital adequacy COVID-19 claims & demand shift
Systemic responses to improve sector resilience classes as temporary economic support Handling of coronavirus-related claims will these additional risks accurately, whilst
have focussed on increasing regulatory capital and enforcement moratoriums unwind. NPL remain a key issue for the sector for some remaining competitive, will remain a
buffers, improving transparency of asset sale activity is expected to increase. time, with public and political pressure likely major challenge to global insurers.
quality and accelerating loan loss recognition to rise. Shifts in demand for some insurance
under IFRS9. Low NIM and high NPL levels NIM and cost pressure products will generate additional strain. Sector withdrawal
remain a drag-anchor to regulatory capital In an ultra-low interest rate environment, net Many insurers are retracting support from major
interest margins on conventional banking activity New threats sector lines – for example, airlines – in order
Asset quality deterioration have been squeezed. Cost transformation Climate change is likely to radically impact to focus on core offerings. This is resulting
Asset quality continues to attract high programmes have been countered by rising the sector over the medium-term. Pricing in reduced choice in specific market areas.
regulatory scrutiny. Asset quality deterioration regulatory and compliance costs (e.g. conduct,
is expected to accelerate across all credit data protection and cyber protection).
Sector rating profile Sector rating profile
Stress levels across the UK bank and non-bank whether evidence of a V-shaped recovery is The sector has remained resilient in the face
lender sector remain subdued. Elevated stress emerging and whether the ending of loan of COVID-19 challenges, but there remain signs
levels are emerging across certain challenger moratoriums (and other support measures) of stress in discrete pockets of the market.
banks and non-bank lenders where sub-scale sees borrowers returning to regular repayments
operations, specialist lending products and or drives a deterioration in asset quality For our latest analysis on the Insurance sector
increased reliance on wholesale funding can that could threaten capital adequacy. interpathadvisory.com/sectors/insurance
create regulatory capital and liquidity shortfalls.
Across Europe, stress levels have generally For our latest analysis on the Banking
been eased by government COVID-19 support & Non-Bank Lenders sector visit:
programmes and temporary regulatory easing. interpathadvisory.com/sectors/
As both unwind, eyes are firmly focused on bank-non-bank-lenders
Financial Services (FS) Segment - Bank & Non-Bank Lenders Interpath Advisory Financial Services (FS) Segment - Insurance
38 3910. Brokers & Asset Management 11. Consumer Finance
MODERATE HIGH
During the pandemic, brokers and asset managers Lenders are under increased financial stress, as margins
have benefitted from increased aggregate household are reduced and the risk of bad debts increase.
saving rates and an increase in trading activity.
Sector trends & challenges Sector trends & challenges
Increased saving rates Bad debt provisions Innovation
In aggregate, household savings rates the potential for disruption, but equally the As the economy slowly recovers from the The sector has been highly innovative, with
have increased markedly during the risks associated with new business models. COVID-19 pandemic, there is a growing the development of digital ‘Buy Now, Pay Later’
COVID-19 pandemic, as well as investing risk of non-repayment from consumers, finance providers a clear example. Continued
increasing in popularity amongst younger Passive investment growth resulting in bad debts being recognised. investment in new platforms and services
individuals. This has provided the sector There is a gradual shift from actively will be important for the larger players.
opportunities to generate returns. managed to passive investment funds, which Increased regulation
removes costs but places greater focus New regulations aimed at treating
Wider economic pressures on price and technological innovation. consumers fairly may result in increased
The sector is vulnerable to macroeconomic costs and operational challenges, such
stress, with risk of outflows or poorly performing as increased credit checking.
funds. The likes of Robinhood and others show
Sector rating profile Sector rating profile
The sector is currently under less stress than The sector has been under significant stress increase regulation of the “Buy Now, Pay Later”,
it has been for several years, as COVID-19 in recent years, firstly following a wave of shows how the sector continues to evolve.
has resulted in renewed interest in savings mis-selling complaints and a tightening of
and investment products to consumers. regulation that increased operating costs. The For our latest analysis on the
innovation shown by new digital entrants to Consumer Finance sector visit:
For our latest analysis on the Brokers the market, partnering directly with retailers interpathadvisory.com/sectors/
& Asset Management sector visit: to provide simple finance products, and consumer-finance
interpathadvisory.com/sectors/ more recently steps announced by the FCA to
brokers-asset-management
Financial Services (FS) Segment - Brokers & Asset Management Interpath Advisory Financial Services (FS) Segment - Consumer Finance
40 41Health Segment We split the Health segment in two parts,
both focused on the private sector.
The Health segment at Interpath is led Nigel Carr We cover the NHS sector separately as part of the Public Sector segment (refer to page 63):
Managing Director
by Managing Director, Nigel Carr, based
nigel.carr
in London. Nigel is an accredited CRO @interpathadvisory.com Private Healthcare Steve Bunn
and Operational Restructuring specialist +44 203 989 2835 Private Healthcare is led by Director Steve Bunn, Director
based in Birmingham. Steve has specialised in steve.bunn
who has advised on a wide variety of stressed and distressed scenarios across the care @interpathadvisory.com
engagements across the segment. homes sub-sector in particular in recent years, as +44 121 817 8636
well as wider private healthcare providers.
Life Sciences & Pharmaceuticals Nigel Carr
Life Sciences & Pharmaceuticals is led by Nigel Carr. Managing Director
The British pharmaceutical sector has been at the centre nigel.carr
of global efforts to stop the spread of COVID-19 and @interpathadvisory.com
the volume of restructuring activity is current low. +44 203 989 2835
Health Segment Interpath Advisory Health Segment
42 4312. Private Healthcare 13. Life Sciences & Pharmaceuticals
MODERATE VERY LOW
The private healthcare sector has risen to the aid COVID-19 has resulted in an unprecedented focus on innovation and
of the NHS during the COVID-19 pandemic. However, partnerships to develop drugs and vaccines across the sector.
the sector is facing several pressing issues.
Sector trends & challenges Sector trends & challenges
Increasing cost base Collaboration
The sector faces a rising cost base. This performed by NHS Acute trusts and waiting COVID-19 has resulted in an unprecedented and the WHO on developing greater
trend is now becoming visible in private lists increased to unsustainable levels. focus on innovation and partnerships. pandemic and disease resilience. However,
healthcare, where increased scrutiny by Knowledge sharing and collaboration there will remain a strong requirement
regulators is driving increased costs to Global investment to develop vaccines between pharma to show value for money for R&D.
deliver high quality and safe care. Globally, there is likely to be increased companies may further strengthen the
investment in private and public healthcare, UK and Europe’s position in the sector. Regulatory changes
Change in mix of services with the healthcare supply chain Concerns remain over potential regulatory
Referral patterns from the public sector have underpinned by increased demand. Long-term investment challenges following Brexit and there is an
changed following the impact of COVID-19. For There is likely to be an increase in future increased focus on the use of data – patient
much of 2020, little to no elective work was investment from national governments data, predominantly – across the sector.
Sector rating profile Sector rating profile
Despite some structural challenges, including towards insourcing amidst increased political The team at Interpath have observed a fairly the vaccine rollout which is progressing at
increased regulator focus, we have not seen focus on social care provision and anticipate limited volume of restructuring activity in materially different rates elsewhere in the world.
a great deal of restructuring activity in the a modest rise in restructuring activity. the sector over the longer term. The sector’s
private healthcare sector in recent years. primary role in helping the global economy For our latest analysis on the Life Sciences
We have however observed a number of For our latest analysis on the Private get back to work will likely elevate the sector & Pharmaceuticals sector visit:
new pressures mounting as a result of the Healthcare sector visit: yet further as a prized and protected asset. interpathadvisory.com/sectors/
pandemic, not least the private sectors’ role in interpathadvisory.com/sectors/ We continue to keep a close eye on the market life-sciences-pharmaceuticals
supporting public sector healthcare which has healthcare-private and note emerging geo-political distrust over
obviously been at the forefront of the national
response to COVID-19. The outlook remains
uncertain but we see the potential for trending
Health Segment - Private Healthcare Interpath Advisory Health Segment - Life Sciences & Pharmaceuticals
44 45Property Segment
The Property segment at Interpath is led Steve Absolom
Managing Director
by Managing Director Steve Absolom, based
steve.absolom
in London. Steve is a licensed insolvency @interpathadvisory.com
practitioner and has extensive lender- +44 203 989 2887
side workout experience in corporate real
estate, as well as advisory experience
across all elements of infrastructure,
and building and construction.
The segment overall has seen a fairly high level of
restructuring activity over the long term with Real Estate
in particular facing significant headwinds right now.
Across the Property segment our
team tracks 3 specific sectors:
Building & Construction Neil Morley
Building and construction is led by Director Neil Morley, Director
based in Leeds. Neil has over 15 years’ of professional neil.morley
experience assisting businesses and management teams @interpathadvisory.com
address underperformance or financial distress scenarios. +44 113 521 7538
Real Estate Scott Marriott
Real estate is led by Chartered Surveyor Scott Chartered Surveyor,
Marriott, an Associate Director who splits his time Associate Director
between Edinburgh and London. Scott is integral scott.marriott
to the design and implementation of our client @interpathadvisory.com
solutions on all major real estate engagements, +44 131 385 7921
including our recent high-profile work on Intu.
Infrastructure Adeola Oke
Infrastructure is led by Director Adeola Oke in London. Director
Adeola sits within the Special Situations Group and advises adeola.oke
corporates, lenders and other financial stakeholders @interpathadvisory.com
in complex financial restructuring scenarios, as well as +44 203 989 2653
some long term operational restructuring projects.
Interpath Advisory Property Segment
4714. Building & Construction 15. Real Estate
HIGH VERY HIGH
COVID-19 has added uncertainty to a sector already As the economy recovers, the way we use and operate
facing challenges. Liquidity has been tight and may from property will evolve requiring innovative solutions
become worse as support schemes are tapered. and a pragmatic view from stakeholders.
Sector trends & challenges Sector trends & challenges
Reverse charge VAT Shortage of skilled labour Reduction in market rents
Changes to VAT rules have impacted short- In recent years, the construction industry has The likely fall in occupancy rates, increasing and commercial space in urban centres.
term cash flow throughout the sector, as well become increasingly reliant on EU workers. If costs and pressure on turnover, particularly in Urban centres need to be multi-purpose.
as increasing governance requirements immigration is limited due to a reduction in free retail and commercial space, is likely to reduce
movement, the skills shortage could worsen. rental income, see a shift to more turnover Environmental credentials
Societal shifts rent and increase the need for incentives. Real estate developers and owners
Societal shifts driven by COVID-19 may reduce need to be increasingly aware of the
demand for new residential and commercial Structural shift importance of environmental standards
units. Therefore even with government support, The pandemic has the potential to create a such as BREEAM ratings in order to secure
operators specialising in city centre office long-lasting change in usage patterns and ‘blue chip’ tenants. Demand for quality
locations may face greater challenges. requirements, particularly for retail, leisure regional offices could increase.
Sector rating profile Sector rating profile
The building and construction sector has and changes in the way we live and work. The stress within the sector has gradually For our latest analysis on the
been the most prolific for business insolvency This has led to a rise in the caseload we are increased in recent years, as the steady Real Estate sector visit:
rates in the UK long term. Given the largest seeing and predicting for the period ahead. transition to online shopping has created excess interpathadvisory.com/sectors/real-estate
volume of market participants are within capacity. In 2020, COVID-19 has transformed the
the SME community, these often fall below For our latest analysis on the Building sector, with the very purpose of urban centres
the threshold for press coverage. Common & Construction sector visit: as commercial hubs coming under question.
issues in the sector have been compounded interpathadvisory.com/sectors/
in more recent years by the uncertainty building-construction
caused by the COVID-19 pandemic, Brexit,
Property Segment - Building & Construction Interpath Advisory Property Segment - Real Estate
48 49You can also read
