1. A Presentation on Working Capital Management for the French Chamber of Commerce SME’s and Entrepreneurs Club 21 January 2010

2. Stephen Bailey A qualified accountant with over 30 years accounting experience in the service sector with a variety of international companies. Gained an MBA from the prestigious Henley Management College in 1996 Involved in successful transactions including the sale of ZMB, the legal recruiter to Hays plc and the £50 million management buyout of Swift Technical. Currently working with Cedric Filet at Aldelia as a key member of the management team which is helping drive the impressive growth.

3. Why Cash Is King Too many believe that profits are the measure of success – They are indeed an important indicator of success However cash is more fundamental to success Without cash profits don’t matter A highly profitable company can run out of cash and make itself vulnerable to problems and failure

4. Why is it an issue? Management spend too much time focusing on: - – Winning new business – Managing Margins – Controlling Costs Cash is seen as the responsibility of the finance team – It’s just a collection issue

5. Why is cash management important? Without it a firm might not be able to – Make investments in technology – Make investments in people – Need to borrow more money at a higher cost – Be vulnerable to a large customer who is a slow payer

6. Understanding the key terms Profit – Simply : Revenue less expenses Cash – Simply what you have in the bank Cash Flow – Simply the inflows and outflows of cash over time

7. Key issues in cash management Receivables Management Creditors Management Adequate and suitable funding facilities

8. Receivables Management Not just about collections! – Evaluate who you do business with – thoroughly – Review the invoice production process – Ensure that the invoices are correct – Get the invoices out quickly – electronically if possible – Follow up the client before the invoice is overdue – Know your clients processes

9. Receivables Management Have a robust collection process – Regular contact – Deal with queries quickly – Challenge the client – Get payment commitments – Follow up Work as a team – it is a company wide responsibility

10. Creditors Management Select appropriate partners Stretch the payment terms Make regular payments

11. Adequate Facilities Match facilities to requirements – Finance fixed assets acquisitions to protect cash Leverage the assets – Debtors – Stock Select an appropriate bank Seek advice

12. A Presentation on Working Capital Management for the French Chamber of Commerce SME’s and Entrepreneurs Club 21 January 2010