Providing a joined up approach


Increasingly our expertise involves working in partnership with farmers and their other professional advisers to develop business strategies and solutions that can meet the requirements of all parties concerned.

We have an extensive track record in providing information to, and working with banks, accountants, solicitors and other third parties to provide:

  • Expert opinion
  • Detailed investigation of business costs and performance
  • Strategic reviews and budgets
  • Ongoing monitoring, appraisal and support to ensure delivery of a business strategy

Case Study 1

Business forecasts in support of continued Borrowing

The customer in the Midlands region had been struggling to achieve a profit sufficient to meet the requirements of the business, specifically the level of private drawings.

The bank required evidence to support a decision to renew the borrowing facility. On behalf of the bank, Promar carried out a review of the business and initially provided two years of detailed forecasts and cashflows based on continuation of the current performance. This was followed by an in depth strategic review of the business, a SWOT analysis and running of a number of possible business scenarios.

A further two years of cashflows and forecasts were produced which, following discussion with the milk processor, included an element of achievable improved technical performance including increasing herd size by around 40 head, to show a realistic assessment of profit potential and the impact on borrowing requirement. At the same time, actions were proposed to reduce the profit requirement necessary so the farm would be better able to meet the demands placed on it.

Proposals were made to reduce commitments through changes to the HP schedule and actions to reduce an unsustainable level of private drawings. The outcome was that the bank was able to approve further funding.

Case Study 2

Business restructure following partnership split

Promar were called in by the bank to develop a detailed critical assessment and forecasts to explore how a business could meet changes imposed by the dissolution of a partnership which would have a significant impact on borrowing requirement.

Based on the calculation of the extra capital required to allow the partnership split, three years of cashflows and detailed budgets were produced for two different scenarios, one of which required increased investment, on and off farm, to allow the business to generate an increased profit. One option was proposed by the bank, the other by the farmer.

The outcome was that the bank was able to approve increased borrowing, not only to fund the partnership split but also to fund investment in the business, including a 15% lift in herd size following confirmation from the processor of a market for the additional production.