Cash & Working Capital Management

Purely Financial is experienced in identifying the root causes of working capital lock up and implementing action plans to correct.

Purely Financial also manages day to day cash flow in difficult situations whilst funding is put in place or a purchaser found.

Our experience tells us many businesses in Construction don't realise how much cash is locked up in work in progress. Purely Financial worked with one Building and Maintenance Company to unlock £6m of cash and halve the amount of cash locked up in work in progress. The key milestones to achieving this outcome were:

• Carrying out root cause analysis and detailed process reviews to identify where surplus cash was locked up
• Developing a clear action plan with targeted outcomes
• Implementing new key performance indicators and a clear reporting system to track progress
• Working with customers to reduce debt - more than halved debtor days to 25 days
• Working with operational teams to reduce work in progress with a focus on achieving an average 28 day target life cycle from instruction to invoicing

There were a surprising number of barriers to invoicing as soon as jobs were complete.