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CASHFLOW
FORECASTING
Lincoln Allen, Cashflow Controller
11 June 2008
Overview
Cash balances & long term debt
What is cashflow forecasting?
Reporting and models
What gives me a headache
How you can help.
Investing cash
How much? £51m
For how long? instant to 6 months
In what? SIBA Term deposits Via cash managers Money market funds.
Long term debt
Debt refinancing (£165m)
To fund infrastructure programme
Liquidity days
50 days is trigger line
40 days is rock bottom.
What is cashflow
forecasting?
A cashflow forecast is, err, self-defining, a cashflow forecast! Includes all cashflows:
Operating activities Finance activities Capital program
For 5 years by month/quarter AND For next 90 days by day
Advantages of
cashflow forecasts
Cash is quing
Easy to understand
Shows impact of change
Identifies financial issues
Model/scenarios
Scope corrective action
A financial tool in the FD’s kitbag.
Financial
disciplines
Liquidity days
Rigorously control debt
Don’t run out of cash.
Cashflow reporting
Monthly reporting to FD
By month/quarter to 2013
By day for next 90 days
Liquidity days
How good are the forecasts?.
Models
Long term (5 years)
Short term (3 months)
Integrated reporting
Health check.
Headaches
Garbage in = garbage out
Annual data v monthly forecasts
Timeliness of information
Integrating into existing processes
Profile
Analysis of actuals
Limited non-involvement.
Challenges
What you can do
Cash culture awareness
Keep me in the loop Tell me about anything >£25,000
Ring meEmail meUse form on the netStop me in the corridor
Tell me about changes to plans
Tell others.
EXPERIENCE THE RAW GUT-WRENCHING DRAMA OF HUMAN CONFLICT THROUGH
CASHFLOW FORECASTING
PREPARING TO DO
BATTLE THE THRILL OF VICTORY THE AGONY OF DEFEAT
Contact details
Lincoln Allen
Cashflow Controller
Finance Services
Tel: 3827
Email:
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