Client

Our client is a leader in chemical reclamation, focused on converting industrial waste into reusable resources and supporting a more sustainable circular economy for Australian industries.

Purpose

The client required a corporate financial forecast model to support an upcoming refinancing, potential process, and internal management reporting. A key requirement was the ability to generate a consolidated financial view across two entities.

The model needed to forecast operational performance by translating operational drivers into financial outputs and generating integrated financial statements at both the entity level and consolidated level.

The model included:

• A driver-based revenue and operating expense model tailored to the operational characteristics of each entity
• A data import mechanism that automatically ingests historical accounting data from Xero
• Fully integrated 3-way financial statements (Income Statement, Balance Sheet, and Cash Flow)
• Consolidated financial statements to combine both entities into a single consolidated view
• Financial covenant monitoring to track compliance with lender requirements
• A scenario handler to test alternative production, pricing, and cost assumptions
• Dashboards providing operational and financial insights for management

Approach

Forecast worked closely with the client to understand the company’s business model, operational drivers, and reporting requirements. We also maintained frequent communication with the company’s main creditor and investment banker to ensure the model addressed the needs of all stakeholders.

Using these insights, we developed a dynamic driver-based financial model capable of generating integrated 3-way financial statements at both the standalone and consolidated levels.

The model structure was aligned with the client’s operational terminology and reporting practices, ensuring it could be easily adopted as an internal planning and decision-support tool. Scenario analysis and interactive dashboards were incorporated to support strategic planning, financial covenant monitoring, and operational decision-making.

Outcome

The model provided the client and its stakeholders with a clear, integrated view of operational and financial performance across both entities. It supported financing and divestment discussions by demonstrating forecast cash flows and covenant compliance under different scenarios. The model also serves as an ongoing management tool, enabling the client to update actual data, test assumptions, and monitor performance to support informed decision-making.