We rely on a comprehensive business analysis framework and an established methodology to ensure we build financial models that are most importantly, commercially relevant. The core of our construction methodology is based on models that are;

• Easy to Use
• Robust
• Flexible
• Fit for Purpose

• We are in the process of advising a labour intensive industry and rolling out a financial model that allows the industry association’s members across the State to:

   

o         Determine the true cost of their operations and calculate a per hour labour rate.

o         Perform sensitivity analysis on their individual circumstances and movement of key variables.

o         Obtain industry based benchmark feedback in establishing appropriate hourly rates of remuneration with their main suppliers.

This work is all in preparation for negotiations that will occur shortly. This model is being rolled out as a low cost opportunity to assist operators to maximise their returns in upcoming negotiations by showing them, and potentially their suppliers, the real costs associated with running their businesses sustainably.

The process has also allowed a historically fragmented industry to come together.

• For a not-for-profit government statutory body we have prepared a financial model to determine:

o         An overall profit and loss for their operations based upon a complex training and consultancy calendar.

o         Their current utilisation of Full Time staff on a monthly basis and their allocation to various activities related to the delivery and preparation of training.

o         Test a large number of overall scenarios for the operations as well as at an individual course or consultancy project.

o         Undertake a break-even analysis at a divisional and on a course by course basis.

Some of the issues the client needed addressing were to help them gain a greater understanding of the direct and in-direct costs attributable to each revenue stream, the treatment of pro-bono work, identify which training courses were profitable/loss making, and break even points for each of these courses.

• We have recently constructed a semi automated consolidation package in
  Excel that automatically brings in data from the clients existing financial systems and converts the information to a statutory reporting package including fully compliant financial statements and supporting notes. 

The client group consists of 6 divisions and 5 entities, of which 2 divisions were consolidated to Parent Company level and the other 4 entities were then consolidated with the Parent to form a Group position. The elimination entries were automated where possible with provision for manual adjustments for further disclosures.

This package will be converted into a management reporting package that provides monthly reporting in the next stage of the assignment.

• We are in the process of preparing a cash flow budgeting model for the purpose of determining future maintainable earnings for valuation purposes for the Infrastructure part of a Group. The model will be used as a benchmark for future internal assessment and will be passed to the client as a strategic tool for use at senior management and board level to allow them to position the company in future.
• We have just completed a foreign currency exposure calculation model for a client in an importing business.

The client is continuously taking out block USD hedge contracts and applying different order invoices against them to contain any exposures to currency fluctuations that occur between the date of order (whereby they perform a costing to determine a selling price) and the date that they actually pay for and receive the goods. The model is extended to take account of trade finance arrangements that are then sometimes entered into for certain invoices where goods are bought for stock, or not otherwise sold prior to landing

The model assists the business in planning hedge contracts, trade finance arrangements and the allocation of the orders to each hedge contract. It also provides indicative unrealised gains and losses along the way to monitor the foreign currency strategy.