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CR CORPORATE SOLUTIONS

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Improving Financial Management

Craig Rattray was one of three people invited to “pitch” to a company that had extremely poor financial information and had suffered from poor internal and external financial support. Having successfully being appointed, the role was split into two phases to cover initial work required followed by ongoing support.

The family owned company had grown from turnover of c£3.5m in the previous year to c£5m and was annualising c £6m in the current financial year. However, financial information was significantly behind and that which was available appeared to be wholly inaccurate.

The initial phase involved three main elements:

  • Review of Existing Financial Management and Reporting
  • Review of Cash Management and Forecasting
  • Preparation of the Budget

As part of the process new accounting advisers were appointed and we worked closely with them to ensure that the previous year end figures and balance sheet were accurate, to allow that as a basis for going forward. Internal roles and responsibilities were changed and various new reports and controls were introduced, and the existing finance facilities were also increased by the existing bank.

The new reporting regime is working well with timeous and accurate information produced on a weekly and monthly basis, which is formally reviewed by the board at the monthly meeting. The rolling 13 week cashflow model is updated weekly and used as a basis for managing cash and making key investment decisions going forward.

The results have been an improvement in gross margin, a greater control over cash and greater certainty over historic results and the way forward. The revised strategy which we have assisted in developing has seen the company consider an acquisition, plan for future investment and also consider longer-term succession.

Craig Rattray has continued in a part-time Finance Director role and assisted in other strategic and commercial matters on an ongoing basis. The company is well placed for continued profitable growth over the next few years.

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