Tag Archives: interim FD

Has your business lost its “One Direction”?

 

It can happen at any time in business, just as in a boy band, where a key member of your Board or senior management team decides to leave suddenly disrupting the growth, momentum and stability of the business. Larger companies can look from within to promote however SME businesses may find they have a significant gap in resource. Initially the reaction is to either survive for a period whilst diverting other resource to backfill or use their auditors or other professional advisors to provide support. Using temporary cover is also another option however they usually need to be managed and are on short notice with the risk that they may also move to another role.

The use of an independent career interim, that tends to operate at Board level, is a solution that can provide the necessary resource to a business and also take on the recruitment of a permanent alternative. They provide the functional responsibilities to ensure the minimum of disruption the direction and momentum of the company and will contribute objectively. Commercially focused interims can perform a number of activities including forensic review of the business, the development and implementation of strategic and operational initiatives, assist in restructuring or identifying change requirements in business processes, controls and systems.

Their dedicated focus is to deliver results with objectivity, accountability, flexibility and are immediately productive and efficient. Unlike consultants or temporary staff, where costs tend to drop to the “bottom line”, interims focus on the delivery of benefits to your business. The outlay on the cost of an interim should be matched by a multiple of benefits over time.

MW Interim Finance can assist you in compiling or reviewing your business / risk plan in key commercial areas of your business, in addition to providing an independent CFO/FD resource on an interim basis. For further information or a confidential discussion about your specific requirements, please contact Martin Walby FCMA CGMA on + 44 (0) 7876 566875 or email martin.walby@mwinterimfinance.co.uk

Pension Freedoms………..personal versus a business viewpoint

In April 2015 the much publicised changes in pension flexibility are due to come into force and there has been much media and other commentary on the likely choices individuals may make. Some people could choose; a flexible drawdown approach, review whether annuities still provide the best option, fund other pensions from income from another pension, (within statutory limits), or even “blow the lot” on an expensive car, luxury home or fritter away on other activities such as holidays. In the latter case it must be noted that the balance of pension withdrawn, over and above the tax free maximum of 25%, will be added to any other income earned and taxed at the relevant marginal rate.

If you have reached or are approaching retirement age then there could be interesting decisions to be made, assuming that a significant “pension pot” has been accrued. For those in their twenties and thirties there is some attractiveness to being able to access a pension more flexibly, however the age at which they will be able to do this may well be moved upwards by successive governments.

A more interesting point is for businesses that possibly will have a number of the senior management team approaching retirement age or perhaps considering early retirement. If succession planning has not been part of a company’s risk strategy or no attention has been paid to the replacement of key personnel, then potentially critical business knowledge will depart with those retiring. There could be a significant loss to businesses of all sizes over the next couple of years if the risk and business plans of a company do not address pension flexibility.

MW Interim Finance can assist you in compiling or reviewing your business / risk plan in key commercial areas of your business, in addition to providing an independent CFO/FD resource on an interim basis. For further information or a confidential discussion about your specific requirements, please contact Martin Walby FCMA CGMA on + 44 (0) 7876 566875 or email martin.walby@mwinterimfinance.co.uk

The engagement of an interim finance director or CFO should never be a cost to your business

Unlike consultants or temporary staff, where costs tend to drop to the “bottom line”, interims focus on the delivery of benefits to your business. The outlay on the cost of an interim should be matched by a multiple of benefits over time.

Business owners, directors and senior management tend to utilise in-house resource to deliver their strategic and operational objectives, assuming their staff have the requisite knowledge, experience and gravitas to deliver expected results. In many cases there are prolonged increases in work load across the organisation leading to significant pressures on personnel, processes and procedures. The implementation timetables can often be delayed with functional areas “taking their eye off the ball” when it comes to sales, operations, cost, profit and cash flow, and perceived improvements and synergies are often significantly diluted.

If you have an operational or strategic project that requires implementation and you wish to discuss how an interim finance resource can work with the business, contact martin.walby@mwinterimfinance.co.uk at MW Interim Finance or see our website at www.mwinterimfinance.co.uk

Small Beer UK Budget ?

As is the case with any budget in recent times there is a mix of good and bad news for both consumer and business and the one delivered last week by the Chancellor was somewhat flat, (a bit like the 1p reduction in beer duty). This will do nothing to radically get the UK out of the economic woes for some years, with projections of better times past the next election. No matter who is in power politics appears to be more important than positive action.

There was good news for the increase in personal allowance for 2013/14 and the £10k allowance for the following year. The non addition of duty on petrol is not actually a saving to consumers who are consistently paying higher prices from the oil companies anyway.

For small businesses, the additional National Insurance relief of £2k on the hiring of new employees is a welcome move however this is not effective until April 2014. The move to a 20% corporation tax rate is good for larger corporate enterprises but does nothing for the rest of business. Other good news was the increase in annual investment relief for plant and machinery to £250k which reverses the decrease from last year and is effective for two years.

If you have a business with a will, but no senior level resource to implement operational improvements, strategic restructuring or if there is a project that requires review and delivery, an independent short-term interim finance director may be a way to make the changes. MW Interim Finance can provide a dedicated commercially focused finance director and business partner in “managing change effectively”. Visit www.mwinterimfinance.co.uk or email info@mwinterimfinance.co.uk.