Company Position, 3rd Quarter 2010

We continue to be well ahead of target in terms of growth, with sales increasing dramatically. Profitability has taken a squeeze due to a continued to use contractors – top quality contractors are expensive and it’s difficult for the company to make much of a margin. However, they do help with client retention.

The figures are deliberately slightly more vague this time. Why? Because they don’t have to be that precise and it saves considerable time in preparing this post! Efficiencies, you know…

Amount (£) Change on previous year (%)
Sales 149,000.00 +200
Full Time Employees* 4 +100
Contract Employees 2 n/a

* Equivalence used – two part-time employees working 37.5hrs count as one employee.

One of the largest problems we face is that the growth in cost turns cashflow into a significant issue for management to deal with. One key problem has been that banks are no longer willing to extend lines of credit without personal guarantees from the directors. Given this situation, the directors have opted that should the company require short-term funding this will come from the directors themselves. There is no risk to the company as assets are considerably higher than debts to creditors.

Efficiencies

There is a project in place with the administration and management team to streamline and organise the company processes. This will help release staff members to carry out more chargeable work and should reduce the need to recruit new staff. We are, however, searching for an excellent WordPress developer to help the project team grow.

Order book

We are currently not accepting new customers and have project work planned until the end of April.