Case study: Financial forecast model for e-commerce company

The Client

This Isosceles client is an established e-commerce company based in East England. They employ 25 staff and have a turnover of around £9 million. Their primary product offering is high-quality and stylish appliances personalised to fit their clients’ interior design requirements. This ambitious client plans to grow and expand their market reach.

The Requirement

The client had limited internal finance resources and required a financial forecast model for a five-year period as part of a debt funding application. Thus, they needed help from an experienced Finance Director who understood their market and their challenge and could develop a five-year forecast model that visualised the business’ growth trajectory against the current and proposed new lending facilities to ensure the company could repay the loan.

The Solution

Isosceles provided a team consisting of a Finance Director and a Financial Modeller with e-commerce and retail experience to help the CEO build the required forecast models and support their decision-making process.

An integrated five-year financial forecast model including Profit and Loss, Balance Sheet and Cash Flow to allow the client to analyse historic data and compare with future projections.
A flexible forecast model that would allow scenario planning when assumptions were changed.
A summary dashboard to enable the client to visualise and understand the data.

Isosceles’ Financial Modeller worked on different scenarios, including changes to revenues and cost base, to improve the client’s decision-making process and visualise data.

Why Isosceles?

This was a new relationship and a one-off project. The client sought help with the financial forecast model and part-time support. Isosceles proposed financial experts who have substantial experience in the retail and e-commerce sectors.

The company’s CEO was impressed with the professionalism and knowledge of our proposed Finance Director and Financial Modeller.

The Results

Built a five-year financial forecast model which was easy for the client to use
The client was able to progress with the loan application.
Lastly, the new financing (when approved by the debt company) will overcome their immediate cash flow issue.