Dear Friends,
I hope this note finds you well. With the continued economic uncertainty in the world it is important now more than ever before that we exercise financial prudence in our investment decisions.
In this context we must put a greater emphasis on cash collections and providing tighter control on credit terms and vetting of potential new customers. Can I ask you to please monitor these issues on a daily basis.
In relation to working capital funding requests , we will always be supportive were robust new sales are achieved. Robust meaning contracts attracting 15%+ gross margins and reasonable Working Capital investment. Any contract wins below this level will have to be self funded internally.
Thomas will be sending out a control sheet to all the accountants that should be submitted with any request for funding and the sooner we get this returned the quicker funding can be made available.
With regard to acquisitions, we are keen to develop with companies achieving double digit growth and +10% EBIT post merger. Please consider these minimums when exploring any targets.
The above is for guidelines ...there is always exceptions but exceptions should be few and far between not the norm.
Thank you.