Last night we downloaded the latest annual report (2013) of a medium-sized UK food supplier from Companies House, and extracted the following:
2012 2011 Buyer’s reaction:
£’000 £’000
Sales 65,000 55,000 +18% “We helped, how about a discount?”
Net margin 8.5% 9.1% “Double our 4.3%, we need more…”
Stockturn 21 times 19.6 times “...helped by our forecasting/efficiency, gimmee”
(i.e. days stock 17 days 18.5 days) (potential lapses in availability = deductions opportunity?)
Trade debtors 56 days 56 days “...we pay you in 46 days, we want 10 extra days”
Trade creditors 39 days 26 days “this shows you are now taking 13 days extra to pay
for ingredients, to cover cost increases!”
Incremental sales for each
£1k trade spend = £11,7k “Your large net margin means you can afford to invest more”
Return On Capital Employed
22% 25% "Compared with our struggle to hit 11.5%, you guys have it easy"
*****NB. In-use demo here will connect you to a scenario treatment of the buyer-seller dialogue in practice!
This is just for starters!
If you feel that your team might benefit from a live run-through of your open domain figures at Companies House, and their application in negotiation, why not email me on bmoore@namnews.com, or give me a call on 07977 273409?
2012 2011 Buyer’s reaction:
£’000 £’000
Sales 65,000 55,000 +18% “We helped, how about a discount?”
Net margin 8.5% 9.1% “Double our 4.3%, we need more…”
Stockturn 21 times 19.6 times “...helped by our forecasting/efficiency, gimmee”
(i.e. days stock 17 days 18.5 days) (potential lapses in availability = deductions opportunity?)
Trade debtors 56 days 56 days “...we pay you in 46 days, we want 10 extra days”
Trade creditors 39 days 26 days “this shows you are now taking 13 days extra to pay
for ingredients, to cover cost increases!”
Incremental sales for each
£1k trade spend = £11,7k “Your large net margin means you can afford to invest more”
Return On Capital Employed
22% 25% "Compared with our struggle to hit 11.5%, you guys have it easy"
*****NB. In-use demo here will connect you to a scenario treatment of the buyer-seller dialogue in practice!
This is just for starters!
If you feel that your team might benefit from a live run-through of your open domain figures at Companies House, and their application in negotiation, why not email me on bmoore@namnews.com, or give me a call on 07977 273409?
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