A start-up mineral exploration company with licences in Brazil and Peru needed financial help in managing cash-flow, producing management and statutory account and managing a float on AIM from the finance side.
The company had few financial resources, the CEO was running the exploration projects both in the field and in the UK and had not the time to get involved in the finances. But the company was a start-up using its seed capital and needing to get further funding via an AIM floatation in the near future.
I worked as a part-time finance director starting at a few hours a week increasing to 3 days a week.
Initially a series of cash controls, reconciliations and corporate governance measures were instigated which immediately resulted in the identification of £10,000 seed capital that had not been received.
A robust management accounts process was set up to monitor spend against budgets, and forecast cashflow both in the UK and Brazil/Peru on a project by project basis. This enabled the board to make informed decisions on which projects to progress. Cashflow was also improved by immediately registering for Vat which enabled the company to reclaim the VAT on its eligible expenses.
Payroll was set up including getting exemptions for non-executive directors who were also paying NI through other employment.
Annual statutory accounts were produced primarily in house enabling costs to be saved from using external accountants.
Working with corporate finance advisors and accountants the IPO prospectus was completed and the company was successfully floated on AIM raising £2.3m.
Not only was the company a lot more financially secure, it could make informed decisions on which projects to progress given the amount of cash available. Funding was raised but also costs were saved by bringing some finance work in-house and identifying other cost savings. All projects were monitored so any cost overruns could be identified early and remedied and funds were spend in the most efficient way.
Case study: Ian Anthony (Click here to see Ian`s profile)