UK Infrastructure
Consolidation Modelling

The Challenge

The client’s central planning model was initially built to consolidate multiple business unit forecasts and overlay their complex capital structure. However, their current modelling suite was not fit for purpose, leading to historical errors, so they requested that we review and update the suite and design a new consolidation model with overlay and sensitivity functionality for their annual credit rating process.

The Solution

We initially reviewed the underlying business unit models and reported our findings, which included suggestions for improving calculations and standardizing outputs to avoid the risk of error. At the client’s request, we performed the required changes, which involved modelling complex multi-year contracts. The consistency in the new models’ look and feel allowed colleagues to easily cover for each other, and a single output sheet for each model to save time on consolidation. Finally, the overarching model was built to consolidate the sub-models in a structured way. The critical aspect of the new model was an extensive network of error checks that could immediately flag inconsistencies and missing data, which would historically have been overlooked.

The Outcome

The users of the business unit models could understand their models better and gain confidence in their outputs. The time required to run the entire modelling suite and the annual rating process was reduced by 50%. The client was delighted to note that our error check network does most of the work for them, and we enjoy an ongoing relationship to support the FP&A team.

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George Pavlovic ACA
Director, Financial Modelling
Aleksandra Pavlovic FCCA
Director, Financial Modelling

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