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
•
3500
3000
Be as simple as possible
2500
2000
Be realistic, objective & measured
•
Avoid the “hockey stick”
•
Borrowings no longer required?
1500
1000
500
0
2009
2010
2011
2012
-500
Net profit
2013
2014
2015
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 toolcash 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.