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Supporting a c£400m UK Construction PLC to secure critical Debt Re-Financing


Supporting a c£400m UK Construction PLC to secure critical Debt Re-Financing

March 18, 2022

Working capital and cash flow forecasting is a prevailing requirement for successful companies of all sizes as the impact of COVID-19 places pressure and uncertainty on many industries. It is critical for CFOs navigating such conditions to maintain a clear and detailed understanding of their forecast position so that they can plan for their future financing requirements in a timely manner to maximise the range and quality of options available to them.

The Credential

Tunneys supported the group CFO of a c£400m UK Construction PLC, working with the FC and external advisors to rationalise historic accounting records and analysis into a robust forecast of the groups funding requirement and integrated financial model for presentation to the bank.

How We Helped

Prior to their engagement with Tunneys, ConstructionCo* was observing a material change to a long established working capital arrangement with a major customer and contract following a number of significant capital expenditures. The group enjoyed a strong portfolio of revenue channels however there was great uncertainty around their near to long term cash position amidst these recent changes.

Tunneys worked with the management team to clarify and collate information on the most material assets, liabilities and cashflow affecting activities from major revenue contracts down to taxation & IFRS matters. The data gathered formed a comprehensive view of the historic, present and forecast financial position for the consolidated group. Subsequently Tunneys collaborated with external advisors to establish a robust view of the funding requirement for presentation to the bank.

Value Delivered

Translating and consolidating existing accounting records and analysis into a clear and detailed view of historic and forecast financials;

Providing an operating model for the group to monitor, forecast and manage performance and obligations under bank covenants;

Enabling management and external advisors to test and understand sensitivities to different scenarios and options when deciding upon the most appropriate debt schedule to take.

* all client names have been kept confidential.

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