ProfitBuilder Case Study – Mid-sized business

Contract Review results CS1
The situation
We were asked to review a high value £18m revenue per annum contact in an overseas location by the MD. The management team was concerned that they were not maximising their profit opportunity.
What we did
  • Meticulously analysed & documented all the cash flows (income & expense) of the contract since inception 5 years ago
  • Compared the cash inflows to the terms of the contact with the client
  • Engaged with PwC in the country of operations to review the tax treatment of the operational costs against local legislation
  • Restructured the cost base of the contract to take advantage of tax breaks on offer in the country
The outcome
We identified and realised over £5m of additional profit relating to the historical years, plus a further £2m+ of future profit.
The situation
We were asked to review a high value £18m revenue per annum contact in an overseas location by the MD. The management team was concerned that they were not maximising their profit opportunity.
What we did
  • Meticulously analysed & documented all the cash flows (income & expense) of the contract since inception 5 years ago
  • Compared the cash inflows to the terms of the contact with the client
  • Engaged with PwC in the country of operations to review the tax treatment of the operational costs against local legislation
  • Restructured the cost base of the contract to take advantage of tax breaks on offer in the country
The outcome
We identified and realised over £5m of additional profit relating to the historical years, plus a further £2m+ of future profit.
QUOT-SUNSET-V2

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