ENERGY

DFID: Nigeria Infrastructure Advisory Facility

Settlement Modelling & Analysis

FMA developed a sophisticated fund modelling system for a leading fund manager investing in public services and infrastructure in the UK.  The system consists of a template fund model that can be deployed for each incremental fund at any stage of maturity from inception to fund raising, investment, monitoring and closure.  The model includes sophisticated functionality to re-run investment specific models built by third parties using common assumptions and import the results without requiring modifications in the models’ stand-alone capability.

Centrica

Power Station Operational & Financial Model

FMA developed a model to be used by on a daily basis for the running of a gas fired power station in the Netherlands and determining a trading strategy for the associated gas, power and carbon. The model had to accommodate assumptions regarding gas and electricity price shaping, carbon prices, capacity, efficiency, availability and incremental costs regarding station start-ups. The key component was the development of an algorithm to optimise the running pattern of the station on a 4-hourly basis over 4 years given constraints on the number of starts and associated optional costs. The model is now being used both to determine the short term operational plan for the power station and, using a facility for running thousands of price scenarios, to determine trading strategy and risk limits in the longer term.

PRIVATE EQUITY

Equitix Fund Management

FUND MODELLING SYSTEM

FMA developed a sophisticated fund modelling system for a leading fund manager investing in public services and infrastructure in the UK.  The system consists of a template fund model that can be deployed for each incremental fund at any stage of maturity from inception to fund raising, investment, monitoring and closure.  The model includes sophisticated functionality to re-run investment specific models built by third parties using common assumptions and import the results without requiring modifications in the models’ stand-alone capability.

Primary Capital Partners LLP

M & A

As party to a MBO, Primary required a consolidation model to reflect the acquisition of two market research businesses in the UK and US/Canada. Apart from the model development, a significant part of the work required the analysis and interrogation of the vendors’ models, following up any matters arising. The consolidation model needed to be flexible enough to accommodate further as yet unspecified acquisitions, in unspecified currencies with business entity specific sensitisation. Output could be in any number of currencies with selected outputs feeding into Primary’s standard LBO model.

TRANSPORT

Network Rail

Strategic & Financial Planning Model

Network Rail required a strategic and financial planning model that could combine historic data, current plans and longer term forecasts from a wide range of departments into an integrated view of the business for up to thirty years into the future.  FMA developed a highly flexible model that simultaneously presents the current regulatory financial determination, business plans and performance in relation to the determination, and forecasts of future determinations by the Office of the Rail Regulator. The model produces a wide range of reports under a range of scenarios including regulatory reports, statutory financial statements, treasury analysis and KPIs The model is now used to analyse the full financial implications of current performance as well as the key tool for negotiation of future regulatory income and expenditure.

SUPPORT SERVICES

Serco plc

Business Process Outsourcing

As finance lead, FMA was responsible for the negotiation and development of a financial model for a successful 10 year, £170m financial services BPO contract with Aegon UK. The deal included closed book profiling including fees and premiums as well as a head lease with a 7 year tail which meant significant restructuring of the deal solution. FMA also provided post-bid/operational guidance to the client on the model’s usage.

Sungard Availability Services

Business Process Outsourcing

FMA were engaged to develop a BPO proposal model to provide a cloud based IT solution for a multi-site, £40 million five year contract. The model incorporated a detailed multi-service line catalogue, site and phasing assumptions, staffing headcount and costing. With clarity and ease-of-use at the forefront, the model forecast monthly and annual financial statements, used in-house investment appraisal techniques and schedule, and incorporated scenario and sensitivity functionality.

PROPERTY

Mapeley Real Estate

Property Portfolio

FMA developed a property portfolio bid model (Workplace 2010) for Mapeley comprising over 100 units, including freeholds, short and long leaseholds, for a term of 30 years in a deal worth well over £1bn. The model needed unit level detail, incorporating a staff move programme using critical path analysis, Facilities Management, Life Cycle Replacement and Refurbishment costs, lease renewals and rent reviews, and the potential for third party lets, whether as landlord or sub-let. In addition to the base case assumptions, the model also allowed for sensitisation including programme delays and varied refurbishment.