Trios Group Limited, a national Facilities and Property Management provider, underwent a remarkable turnaround that led to its successful acquisition by Arcus FM, a leading technology-driven facilities management solutions provider.
Trios, operating from a national network of regional offices, faced dire straits prior to its turnaround. In 2016, it was acquired by SPIE Group, an international PLC, but struggled due to failed integration, leaving it unloved, leaderless, and exposed to extensive risks. By 2019, Trios was on the brink of collapse, losing £1.5 million per month on a £60 million turnover. The business was marred by broken systems, low staff morale, and a lack of accurate client information.
The Turnaround Journey:
Trios’ turnaround began with Rcapital’s intervention and a rapid corporate carve-out. Despite the onset of the COVID-19 pandemic, Trios’ leadership and Rcapital’s expertise enabled swift restructuring.
Key actions included:
Immediate Stabilisation (March-June 2020):
- Implemented Job Retention Scheme and furloughed employees.
- Focused on supporting vital services for clients like NHS, Police, and Royal Mail.
- Assessed financial controls, rectified losses, and appointed new interim leadership.
Dramatic Restructuring and Transformation (June-November 2020):
- Right-sized the business, leading to some redundancies while preserving jobs.
- Established a new executive team and CEO.
- Renegotiated supplier and client agreements for improved terms.
- Implemented KPIs, a CVA, and secured a new financing arrangement.
Unforeseen Crisis and Resilience (June 2020):
- Overcame cyber attack, former parent company conflicts, and physical lockdowns.
Renewed Culture and People Development:
- Established values, improved staff engagement, diversity, and inclusion.
- Invested in training, employee development, and promoted talent.
- Post-Turnaround Success:
Trios’ turnaround efforts resulted in impressive growth and accomplishments:
- Revenue growth from £31.5 million in 2020 to projected £40 million in 2022.
- Significant contract extensions and new client wins, including key industry players.
- Successful technology integration, cloud migration, and proprietary tools development.
- Enhanced employee engagement, retention, and culture transformation.
- Trios’ acquisition by Arcus FM, signifying its emergence as a resilient and successful business.
The Future Outlook:
Under Arcus FM’s ownership, Trios is poised for further growth:
- Planned organic growth, acquisition strategies, and strengthened client relationships.
- Continued technology investments, process enhancements, and IT platform development.
- Focus on people development, employee engagement, and diversity initiatives.
Trios Group’s turnaround journey is a testament to strategic vision, resilience, and collaboration. From the brink of failure to becoming a profitable and growing business, Trios’ transformation demonstrates the power of effective leadership, focused action, and a commitment to excellence. The acquisition by Arcus FM signifies a new chapter of possibilities for Trios, reinforcing its place as a resilient force in the facilities management sector.
Chris Green, Chief Executive Officer at Arcus FM, emphasised the strategic significance of the acquisition, saying, “The mobile capability of Trios, its use of technology, and the way it serves its customers made it attractive as we look to add scale and bolster our service offering – and we’re looking forward to working with the team there to see how we can collaborate and integrate to drive outstanding facilities management across the country.”
Phil Emmerson, Chief Operating Officer of Rcapital Partners LLP commented, “The sale of Trios to Arcus FM represents an exciting outcome for the loyal and dedicated management team, employees, subcontractors, and clients of Trios who have shown unwavering resilience, determination, and dedication in delivering an impressive turnaround during some of the most challenging of circumstances. We wish everyone at Trios and Arcus FM the very best of success for the future.”