Financial planning and management

Forecasting the impact of decisions and price shock uncertainty will be crucial in maintaining business continuity. Equally important will be the ability to access finance to fund suitable working capital requirements.

Have you planned for how Brexit uncertainties might impact your cash-flow and access to finance?

Financial planning and management considerations beyond Brexit

Do you have adequate forecasts to make appropriate business continuity plans?

Financial modelling and forecasting - Forecasting and in-depth financial modelling can offer views to maintain business continuity, as well as conducting information reviews and offering tailored accounting options.

Have you got the right information to make the right decisions?

Management information review - Undergoing a management information review will identify and advice on specific issues, taking into account an analysis of budget vs actual, an examination of the production of accounts, the impact of debtor, creditor and or stock day changes.

How have we helped our clients?

We partnered with a major car dealership group to assist them in planning for potential strategic changes.

The business relies heavily on vehicle imports from Europe. Concerns over Brexit has caused manufacturers to ‘rush’ new vehicles into the UK, and onto our clients’ balance sheet, ahead of the scheduled Brexit deadline. Uncertainty over future importation costs and location of manufacturers has driven a desire for more information to support board level strategic decision making.

How did we help?

We are working on a strategic planning template. This tool allows the board to explore a wide variety of “what if” scenario analysis to add context to their deliberations. In particular the leadership of the business is interested in the potential effects of a steep reduction or closure of part of the group, and what the knock-on effects would be on other profit centres. This will enable them to simulate the effect of changes to customs regimes, other potential barriers to commerce and/or a potential economic downturn which would have impacts across multiple areas of their commercial operations.

Our work started with an analysis of FY18 performance, to uncover the underlying partitions along business unit lines. We have worked with key members of the clients’ team to understand and document the relationships and key drivers of costs within the business. The next phase of work will be to take the analysis of FY18 and build in the appropriate levers and scenario functionality to enable an interactive interrogation of the information contained in order to provide insights to support the board in their considerations.

If you would like to know how we could help your business with preparations for Brexit, please get in contact with Simon Hart.

43 per cent of mid-market business believe the UK’s decision to leave the European Union has negatively impacted on investment in the UK.

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