In response to the disappointing financial results in 2022, the international custom construction and products company received a validation request from the bank. This request involved an accurate assessment of the latest estimates (LE) for 2023 and budget planning for 2024, including translating the outline budget into a month-by-month financial model of balance sheet, results and cash flows.
Beaufort validated the latest estimates for 2023 and budget planning for 2024 and developed a versatile forecast model. This model integrates data from project pipelines and capacity of personnel and machinery to generate a complete monthly financial forecast, including results, cash flow, balance sheet (including work in progress), and obligations from guarantees. The model is designed to be continuously updated with current realised data and can calculate on the basis of project forecasting to required production capacity versus available capacity, which is then translated into monthly statements of balance sheet, result, cash flow and utilisation.
