the basic physical and organisational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.
"the social and economic infrastructure of a country"
in or ready for use.
"the new laboratory is fully operational"
Infrastructure in operations
All infrastructure projects find themselves in day-to-day management of their finances.
As in all companies, monthly management accounting actuals are produced for the monthly reporting cycle. There can also be other less frequent events such as reporting to lenders every quarter or half-yearly, as well as investor reporting.
This is infrastructure in the operational period.
During the operational period, an infrastructure company will most probably be required to report to directors, shareholders and lenders.
Reporting during operations requires a tool that is fit for purpose.
We specialise in post-transactional, or operational, financial modelling for infrastructure. This means an Operating Model in Excel.
Here are the basics of an operating model:
What is a strategic operating model?
A Strategic Operating Model is a spreadsheet financial model that forecasts the future using the latest management accounting actuals.
It is also:
A financial model with detailed operational, finance and financing calculations
A financial model with profit & loss, cash flow and balance sheet in Excel format
A model with a semi-annual periodicity (although this can also be annual or quarterly)
A model with a 25-year timeline
A model that can contain multiple input & results sets
A model that is simple and clear to understand
Who is it for?
Long term strategic operating models are for infrastructure and finance directors that wish to gain a deeper understanding of their business.
What are the benefits?
Reporting to directors, shareholders and lenders
Having a clear and organised business plan
Having the reassurance that the model is seeded with the current and latest management accounting actuals
Running extensive operating and refinancing sensitivities
Understanding the impact of different strategies on cash flow, profitability and key performance indicators
Understanding the key drivers of growth of the business
Has it been done before?
Lazuli Solutions has produced strategic operating models for a variety of large UK and European businesses:
A regulated high speed rail company in the UK
A regulated bulk and container ports enterprise in Spain
A regulated electricity distribution network company in the UK
A regulated electricity distribution network in Finland
A regulated gas distribution network company in the UK
Multiple project finance companies such as wind farms, schools, water works, hospitals, magistrates courts and others in the UK
And some non-infrastructure companies:
Media finance funds in the EU
A leading UK pharmaceutical company
A large software company in the UK
A motoring insurance company in the UK
Take a look at various infrastructure modelling case studies from PFI assets to large regulated entities.