Case study: Rosemont Pharmaceutical
Rosemont Pharmaceuticals has been a leading manufacturer and supplier of liquid medicines for over 40 years. In 2015 Rosemont manufactured 4 million bottles across a range of 140 different medicines. Rosemont is based in Leeds, West Yorkshire, UK and has 220 employees.
The ExcelCheck brief was to assess the accuracy (and usability) of a series of spreadsheet models that Rosemont were using for their monthly reporting. The system was made by Rugged Logic, a provider of custom-built financial spreadsheet systems, and the combined size of what they had was around 100MB. By any measure this is a lot of logic.
Although accessible, the spreadsheets they had were not functioning properly, but were producing results. Rosemont were also anticipating a management buyout, so the work had some urgency attached to it.
It was clear that this brief also included an assessment of the actual usability of the existing spreadsheet models.
The ExcelCheck solution was to rebuild the existing models into one financial and reporting model. This approach enabled Rosemont to test the accuracy of the results of the existing models but also provided them with a brand new model built to the FAST standard.
In effect the model audit by reperformance method called ExcelCheck was adapted to the requirements of the situation. Lazuli created one single model from a series of unwieldy models.
Rosemont had one 7MB planning model with full actual, budget and forecast financial statements. The new model also included additional functionality:
- Sensitivity analysis manager
- Reference and difference tool for instant period-by-period and line item-by-line item change comparison
- P&L, CF and BS in current month, year-to-date, 3-month forecast, 3-month budget and full-year outlook format for monthly reporting
- Audit trail manager
The MBO subsequently happened and after that the management sold the company to Perrigo in 2013. Throughout the whole 5-year period Rosemont turnover continued to grow at around 15% a year.