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Cash Flow

Supporting a c40m international boarding school in strategic planning for an incoming Labour government

Cash Flow

Supporting a c40m international boarding school in strategic planning for an incoming Labour government

November 25, 2024

The incoming labour government and various notable market changes have had a profound impact on the education industry in the UK. This has required the board and governers of the UKs notable international and boarding schools to carefully plan how they will deploy their excess capital and other strategic levers to optimally navigate their changing environment. This requires mindful analysis of historic data and professional modelling of expectations to forecast the impact of various multi-factor scenarios on the bottom-line cashflow and returns of the business.

The Credential

Tunneys worked with a the board of governers of a top UK and international private and boarding school to build scenario based financial modelling forecasts to help the executive team strategise how to best deploy their available capital and restructure operations in order to optimally navigate the first 5+ years of the new labour government.

Tunneys were used to create flexible scenario facilities to give the board of governers the ability to combine different options for capital allocation and also test out the impact of external scenarios such as the introduction of VAT to private school fees. .

How We Helped

Prior to engaging Tunneys, SchoolCo* had identified a variety of environment threats and capital investment opportunities that they wished to be considered by the board of governers however the CFO was not equipt to quantify the multi-factor impacts of what was being considered on the complex school group of businesses with both the required flexibility and simple clariity needed to effectively faciliate the discussions of the board.

Tunneys were engaged to create a financial model that encompasses all of the businesses and complexities of the school group, the likely impact of it's environmental changes and the multidude of levers available to the school governers and to create a simple to understand set of options and well communicated results such that board would be able to explore a variety of paths.

Tunneys worked closely with the exiting and incoming CFOs of the school to produce an self-serve financial model that could accurately and clearly organise and explain the various factors driving the school as a business and the impact of each as key levers for the board of governers.

Value Delivered

Flexible bespoke financial modelling support tailored to the CFO;

Highly variable scenarios and sensitivities;

Personal on-hand support for the transitioning CFO role;

Continued flexible support to the business.

* all client names have been kept confidential.

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