CASHFLOW FORECASTING Lincoln Allen, Cashflow Controller 11 June 2008.

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:

[email protected]