Expertise Provided

Forensic Audits

Finmil has been successfully involved in numerous forensic audits and investigations for oil companies in the following:

1. Turnover levy: Forensic audit on the amount of sales declared to calculate turnover levy (rental).
2. Rooter fuel: Forensic audit to determine and verify the quantity of wet stock purchased from an unauthorised third party without approval by the oil company.

Valuations of Sites

Finmil goodwill valuation: Determine the fair value of a filling station based on a bankable due diligence and calculated on the accepted industry valuation model.

Profitability and Rescue

Determine the actual profit and net free cash flow that a specific site needs to generate, taking cognisance of any capital loan repayments.

Finmil offers rescue-plan implementation based on the above, with changing operational standards, internal controls and procedures. We ensure that all operating expenses are in line with benchmarking and that maximum acceptable sales margins are achieved. Finmil assesses debtor’s feasibility, taking cognisance of the available working capital.

Finmil’s experience is that 80 percent of filling stations that is in destress are due to the lack of sufficient working capital. Finmil can arrange additional working capital, if needed, on an approved Finmil deal with Absa.

Compliance and Mentorship

Finmil Mentorship Programme: Offers mentorship with monthly financial reporting on highly geared purchased sites.

Finmil has successfully mentored dealers in obtaining the necessary knowledge to operate their sites with huge success.

Finmil Compliance Monitoring Programme: Finmil offers a compliance monitoring programme on a daily, weekly, and monthly basis to ensure budgeted sales, volumes, and expenses are accounted for.

This Finmil programme is an extremely useful tool for oil companies and financial institutions to early-detect deterioration in sales, volumes and cash flow.

Training

Finmil has developed and presented the following courses at oil companies:

Finance and Business Planning for New Dealers

Finmil offers courses to new industry dealers on Cash Flow; Operational Standards and Procedures; Analysis and Interpretation of Filling Station Monthly Management Statements; Benchmarking and Break-Even Analyses in the Retail Fuel Industry; General Retail Business Principles; Different Forms of Business Ownership; and Marketing Strategies.

Finance and Business Planning for Existing Dealers

Finmil offers courses to existing dealers on Cash Flow Management; Operational Standards and Procedures; Analysis and Interpretation of Filling Station Monthly Management Statements; Benchmarking and Break-Even Analyses in the Retail Fuel Industry; General Retail Business Principles; Different Forms of Business Ownership; Wet Stock Management; and Marketing Strategies.

Refresher Course for Oil Company Network/Area Managers

Finmil offers courses to oil company employees overseeing sites on Analysis and Interpretation of Filling Station Monthly Management Statements; Filling Station Debtors’ Feasibility; Calculation of Working Capital to Efficiently Operate a Site; Wet Stock Management; and Benchmarking on Filling Stations.

Plug and Play Programmes

The following Finmil ‘plug and play’ models have been developed for oil companies:

1. Finmil benchmarking – profitability of a filling station;
2. Finmil debtors’ feasibility and the influence of debtors on working capital in a filling station environment;
3. Finmil working capital calculation – calculates the adequate working capital needed to efficiently operate the site;
4. Finmil promotions feasibility – track and monitor promotions;
5. Finmil break-even analyses on new profit opportunities such as Woolworths, bakery, and coffee, etc.;
6. Oil-company specific programmes – development of programmes to assist and ease the workload of oil company employees overseeing filling stations.