United Kingdom

Cash Visibility & Control 

Optimising cash management is increasingly important for all businesses with cash being a key feature of strategic decision making.

What's on your mind?

 

  • Funding growth, acquisitions or major capex without raising additional funds externally.
  • Internal issues: e.g. pensions liabilities or growth in business complexity.
  • Performance issues e.g. cash consuming operations, declining EBIT/cash conversion ratio or rising costs.
  • External triggers: e.g. rating agency downgrade, analyst commentary or market developments.
 
Bringing you peace of mind?
 
  • We can work with management to gain a detailed understanding of the cash flows in, out and around the business and the associated controls and reporting processes.
  • This  understanding enables a forecasting team to be put in place comprising of team members closest to the data sources.
  • We can tailor forecasting instructions and provide hands on coaching for the team involved.
  • We can assess the associated cash controls and reporting structures and recommend enhancements where appropriate.
  • We assist with the challenge, variance analysis and feedback processes to drive improvements in each subsequent iterations.
  • Using the forecast and associated work we identify and implement short and medium/long term cash generation and preservation measures.

 

What's in it for you?

 

  • More accurate forecasting.
  • Better insight into cash operations and controls.
  • Quick wins can identify ways to generate and preserve cash in immediate and short term.
  • Controls put in place to help preserve cash over long term.

 

Why KPMG?

 

  • Established methodologies based upon a lengthy track record.
  • Experienced and dedicated teams with a clear understanding of working within in a operational environment.
  • We transfer processes to management to enable them to continue to manage cash efficiently in the long term.
  • Global network of member firms.

 

Case Study - Project Sodalite

 

Turnover: £8 billion
Sector: International Retailer

 

The Group had concerns about its forecasting accuracy and analyst's comments regarding missing cash flow targets. In addition the Group wished to enhance its cash visibility and control of a major pan-European capex programme.

 

What did we do?
We worked closely with the management team to:

 

  • Assess the current short and medium term cash flow forecasting processes (covering Group, Treasury and key business units).
  • A number of issues and recommendations for improvement were highlighted, in particular that processes were strongly P&L focussed.
  • Forecasts were highly inaccurate and working capital visibility within the autonomous business units was limited. There was a requirement for a more integrated approach, using short term forecasts to drive performance.
  • Working with Group and the local finance teams we planned, designed and rolled out new forecasting processes across the group.

 

Implementation of the new forecasting processes provided the Group with a much greater visibility of the detailed business units operational performance, greater confidence in Treasury and liquidity management and more robust short and medium term cash forecasts and processes.