Financial Forecast Presentation Andy Capes Audit Partner

Introduction General overview of financial forecasts Some recent experiences in the current market

Financial Forecasts Integrated - P&L account, balance sheet, cashflow More than just numbers – business plan Executive summary Key headings Easy to read/interesting to reader No set pro forma Be as simple as possible Be realistic, objective & measured Avoid the “hockey stick” Borrowings no longer required?

Financial Forecasts Funders will review the projections to: Understand how cash generative the business is Gain a clear understanding of the funding requirement in the base case Understand when the ‘pinch points’ are, and how much ‘headroom’ there is How do these look under sensitivity analysis? Have management got a Plan B? How soon can they get their money back and at what return

Financial Forecasts Spending sufficient time on the figures in the business plan: Ensures the plan gives the potential investor the information he needs to know Gives your plan credibility and gives the investor confidence in your proposal Ultimately an investor will only invest in quality propositions with a backable management team, however......a well prepared business plan is the first key step in earning their interest A good set of projections provides a financial management tool- cash management is vital

Financial Forecasts Recent Issues Covenants Bank credit departments “Forecasting is not possible for our business” Management tool Words and numbers must be telling the same story Explaining where it all went wrong!!

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