Management report for a group of companies
From a project: a trading group importing and reselling goods
The task
A trading group turning over more than ₸1B. The owners could not tell whether the business earned money or lived on loans.
What we did
We separated cash flows across the group companies, rebuilt margins year by year and assembled a management report.
4 yearsof illusory profit: loans were masking an operating loss
The decision the owner made
Loan inflows were masking an operating loss. For the first time in four years the owners saw where earned money ends and borrowed money begins, and put dividends on hold.
A fragment of the result
| Metric | Value |
|---|---|
| Turnover over the period reviewed | ₸1B+ |
| Sales margin by year | 5% to 32% |
| Achievable level once the issues are fixed | 25% and above |
| Critical risks hidden behind opaque records | 7 |