The following case studies are just a small sample of the many investigation assignments recently handled by Christie Griffith. We have worked with businesses with turnover from £0.5 million to £ 100 million and with bank debts from £0.5 million to £40 million.
If any of these cases strike a chord with you or if you would like to discuss any similar situations, please contact us.
THE BANK WAS BEING CONTINUALLY REQUESTED TO INCREASE FACILITIES
A construction company (turnover £ 100 million) was in need of repeated increases in its overdraft facilities despite reporting increasing profits. Our review identified that the business was not profitable but this was being hidden by manipulating the book value of work-in-progress. Our review enabled the bank to quantify and manage its potential increase in risk.
THE DIRECTORS WERE UNABLE TO BE REALISTIC IN EVALUATING THE OPTIONS AVAILABLE TO THEM
The directors of a freight services company (turnover £1million) were too involved in the day-to-day management of the business to stand back and consider the strategic options which were realistically available to them. Our work clarified the current financial position and estimated the future cash requirements. This enabled the bank and each key stakeholder to evaluate and implement their best option.
COMPANY PRODUCES UNREALISTIC FINANCIAL PROJECTIONS
A licensed trade business (turnover £1million) in a highly seasonal location had inadequate information on which to project its profitability and funding requirements. We worked with the directors and bank to ensure that realistic projections were prepared and that appropriate overdraft facilities were in place. Our plan identified a number of ways to improve cash flow and over time the banking risk and dependency on overdraft facilities reduced significantly..