Image Reflection

Success

Waste Recycling

Background

  • £4m turnover waste recycling plant
  • Profitable company wasn’t generating cash
  • Strong relationship with bank manager but transferred into Business Support when additional borrowing was requested

Phase One

gaining an understanding
  • FDYL provide Interim FD 2 days a week
  • Initial focus areas
    • Provide support for ‘in house’ accounts assistant
    • Produce reconciled monthly management accounts
    • Produce weekly P&L, balance sheet and cash flow forecasting model to include “make up” of sales and cost of sales that could be amended by clients’ staff
    • Identified less profitable activities
    • Identified monthly turnover, GP & net profit requirements to repay borrowings and capital commitments
 

Phase Two

control and
facility renewal
  • Discuss less profitable activities and plans to either increase profitability or reduce activity in those areas
  • Update forecast model to include weekly actual compared with forecast
  • Support Managing Director in discussions and meetings the bank & other funding providers (asset finance & CID)
  • Negotiate TTP arrangement with HMRC
 

Phase Three

return to profitability
  • Using forecast model, client MD identified a reduction in turnover produces a greater net profit as a percentage sufficient to generate cash surpluses
  • Identified specific trade creditor payments and implemented tighter control against detailed weekly cash flow forecasts
  • Reduced FDYL FD to 1 day per week


T:01274 876822
E:info@fdyl.co.uk

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Interim Finance Directors   |    Management Accounting   |    Acquisition and Disposal   |    Restructure, business support and recovery   |    Independent reviews

Premier House, Bradford Road, Cleckheaton, BD19 3TT              T: 01274 876822              E: info@fdyl.co.uk

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