01Specialist contractor · c.£12m revenue
Profitable on paper, tight on cash
- Problem
- Revenue had grown 30% in two years. The bank balance had not moved, and the owner was funding growth from an overdraft.
- Diagnosis
- Applications for payment were being raised late and retention was untracked. Debtor days had drifted from 45 to 68 with no visibility.
- Intervention
- Reporting rebuilt around contract stage, a 13-week cash model introduced and the application cycle brought forward.
- Result
- Debtor days returned to the mid-40s; peak overdraft use reduced materially.
- Decision impact
- Two contracts were rescheduled rather than declined, because the cash effect was known before committing.