BUSINESS CASE: CACTUS TONI MORENO
Cactus Toni Moreno is a Balearic company in the south of Mallorca that has had nurseries since 1972.
It currently has more than 300 varieties of cacti, with crops of more than 5,500 m2 in covered greenhouses and 60,000 m2 of outdoor cultivation. The company distributes its products to an endless number of countries throughout the world, among which we find Germany, Italy, Holland, Portugal, United Arab Emirates, China, …
CACTUS TONI MORENO Evolution
| Metrics (k €) | 2013 | 2019 |
|---|---|---|
| Billing | 160 | 359 |
| Financial Result | (11) | (5) |
| Result | 2 | 20 |
| LP Bank Debt | 460 | 285 |
| CP Bank Debt (Policy) | 80 | 60 |
| Treasury | (43) | 11 |
| Net Assets | 49 | 118 |
| Total Assets | 140 | 259 |
| Average Employees (#) | 3 | 3 |
Challenges
In 2013 Cactus Toni Moreno was in a very delicate liquidity situation. The level of indebtedness was much higher than what the company could assume with the benefits it generated and it had serious problems meeting its payment commitments (suppliers, debt repayment, payroll, taxes, …)
At this moment, the services of Timonel Consulting are hired, outsourcing the financial management, to restructure the debt and generate a Treasury Budget that helps the company anticipate its payment commitments.
Main functions of Timonel Consulting
- Treasury Management
- Budgeting / Forecasting
- Obtaining Bank financing
- Bank refinancing
- Monthly Reporting
- Preparation and monitoring of the Annual Budget
- Investment planning and analysis to finance them
Benefits/advantage for the Client
Cactus Toni Moreno had high-level financial advice with full flexibility in his service.
- Cost savings of not having a full-time CFO and by outsourcing these activities fix costs are converted into variable costs, that is easier to control.
- Flexibility, adapting the service to the circumstances of each moment.
Time saving and support decision-making process with comprehensive analysis and reports. - Ahorro de tiempo para la toma de decisiones con análisis e informes exhaustivos.
- Greater focus on the business.
- Periodic financial reporting and KPIs according to the demands and timings of investors.
Results
Cactus Toni Moreno has cleaned up its financial position, drastically reducing the level of debt.
- Long-term debt has gone from 460,000 euros at the end of 2013 to just over 285,000 euros in 2019.
- Policies (short-term debt) that were fully drawn down in 2013 (80,000 euros) have risen to 60,000 euros with an average drawdown of 50%.
- Bank interest paid annually has increased from € 11,000 per year in 2013 to € 5,000 in 2019.
“I want to be able to fulfill my payment obligations, and this year Timonel Consulting has helped me a lot to achieve that goal.”
Antonia Portell – CEO Cactus Toni Moreno