J&B Recycling Limited was established in 1994 in a bid to reduce the amount of waste sent to landfill and increase recycling. Now, more than 20 years later, the company has expanded to three UK sites that collectively process over 150,000 tonnes of waste each year.
J&B Recycling Limited needed to introduce a system that would enable the business to forecast weekly profit and loss accounts for all of its sites and cost departments.
Due to the weekly change in commodity prices, the managing director was keen to monitor gross profit per site and cost department, which would enable any concerns and potential issues to be identified in a timely manner.
We were tasked with:
We took a comprehensive approach to meeting J&B Recycling Limited’s requirements which spanned leadership, financial accounting, management accounting and fundraising. The specific actions we took in each of these areas included:
• Conducting a business health check
• Identifying points of reconciling financial data
• Introducing a system that is robust and accuate and provides J&B Recycling Limited with timely information for reporting
• Designing reports and setting KPIs that enable the managing director and senior managers to measure outputs, labour hours and gross profit
• Preparing financial budgets based on identified KPIs, benchmarks and expected outputs
• Introducing weekly forecasting of profit and loss accounts from financial data to monitor the weekly outputs against expectations
• Reporting actual monthly profit and loss accounts against financial budget to identify variances
• Designing a pricing model that incorporates actual fixed costs, allows for variable costs to be manipulated for hours, output and labour hours and reflects the company’s KPIs
• Measuring the ongoing tenders against the new model with updated KPIs, benchmarks and labour hours to review for ongoing profitability
• Introducing a pricing model throughout various departments within the organisation
• Identifying any requirements for capital expenditure and the level of funding required
• Investigating the various options for raising money through local and national grants and raising investment monies through venture capital funds
• Producing financial budgets