Financial Forecast Presentation

Andy CapesAudit 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?-500

0

500

1000

1500

2000

2500

3000

3500

2009 2010 2011 2012 2013 2014 2015

Net prof it

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!!

© 2008 Baker Tilly UK Group LLP, all rights reserved

Baker Tilly Tax and Advisory Services LLP, Baker Tilly UK Audit LLP, Baker Tilly Corporate Finance LLP, Baker Tilly Restructuring and Recovery LLP and Baker Tilly Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Baker Tilly & Co Limited is authorised and regulated by the Financial Services Authority to conduct a range of investment business activities.