Chartered CFO - The compelling choice for SME’s and medium sized groups which require full time business benefits, at part time cost.

Financial Management and Control


Extra £30 million generated from normal operating cash flow
...extracted through the implementation of robust cash control policies, reporting and follow through.

The Challenge
A public group of companies experiencing a downturn in trading due to economic pressures was struggling to operate within its loan and overdraft facilities. The Banks were seeking assurance from management that the cash position was under control.

The Solution
Very urgent action was needed in these circumstances. An "off line" cash management reporting and control process was quickly designed and implemented. Key to getting this "bought into", by the 30+ subsidiaries in this £700m international group, was exhorting the group CEO to personally telephone every subsidiary MD to give the appropriate level of authority and priority to the process.

The Result
Within 2 months an improvement in cash flow of £30m had been achieved which immediately reduced the pressure on bank facilities and enabled a measured recovery plan. The business culture had been transformed in the cash management area, without compromising essential investment.

“I had never realised the potential that there was within the businesses themselves to reduce our working capital requirements in this way. We now have a much greater understanding and focus around the whole area of cash management.” - CEO of engineering group

 
Succinct and timely reporting of business performance in user-friendly format
...enabling swift and confident response to business issues in devolved international group.

The Challenge
An Engineering Group, which had grown quickly through acquisition, now had 19 subsidiaries that reported financial information to Corporate HQ in a variety of styles and to differing timescales. The Group was struggling to assimilate the information for Board reporting and management control purposes.

The Solution
Design and implementation of a “one page” summary of trading, cash flow, balance sheet and key operating measures of performance (KPI’s). One of the keys to success was implementing common definitions of terms, and all reporting being derived from a common financial database.

The Result
Corporate management is now able to quickly assimilate key information for all 19 subsidiaries. Common terminology and definitions result in effective internal benchmarking of performance.

“We no longer waste time debating the integrity and relevance of the numbers. The Board is now able to discuss and respond to the real issues affecting the business operations.” - Chairman of the Board.

<< Case Studies Index