Ongoing disruption from COVID-19, volatile financial markets, instability in supply chains and increased costs could put pressure on the financial performance of organisations.
Our dedicated team of experts can help you navigate these changes.
The exit from the European Union may cause price and cost rises across the organisation. Margins may be eroded by changes to currency values, the introduction of customs declarations, additional paperwork and rising labour costs. While each may be small, taken together, the impact could reduce margins or create the need for difficult discussions with customers.
Delays or distress in the supply chain may lead to problems in recovering cash from customers and suppliers, putting pressure on your cash flow position.
Some organisations are seeing extended payment terms being introduced by key suppliers, which is putting pressure on their cash positions.
Optimise your cash flow positions
Reduce cost base
Engage your supply chain
Most financial pressures will be felt through the supply chain. Working with key suppliers to help them navigate the change could reduce the risks to your own organisation.
Over the last three years we’ve worked with organisations of many sizes and sectors to help them prepare for political volatility.
Our team supported one of Europe’s market-leading modular building suppliers by performing a health check of the group’s cash flow forecasting processes. Through holding process interview and reviewing working files to understand the current process, we identified areas of good practice, and provided insight as to inconsistencies and gaps to best practice. In doing so, we supported the improvement of forecast accuracy in addition to the effectiveness of cash flow forecasting, ensuring consistency with the group’s value drivers.
Our team supported a London-based international law firm in achieving a year on year reduction in working capital of 15% which facilitated a reduction in net debt equivalent to 4% of annual turnover. We undertook an assessment of the movement in net debt levels, identifying the key drivers of performance and recommendations for achieving a reduction in lock-up.
