Case Studies: Publishing Group

Our Midlands regional director Brian Miller was introduced to a publishing group by its non-executive shareholder. The group needed financial direction, not least to resolve historic reporting issues and and to establish meaningful reporting.

The group consisted of several companies, each with their own titles. Some titles were transport-related including some sector-leading titles. Others were free titles available from stands in public places. The business had complex ownership models and cross-charging arrangements had led to incomplete accounting and a lack of clear relevant reporting. The five members of the accounts team were arranged according to function, eg sales ledger and purchase ledger.

There was a great deal of confusion over responsibilities and systems. A medium-sized accounting system had been selected some years previously and was blamed for at least some of the confusion. Financial statements had not been submitted to Companies House and HM Revenue and Customs for some time.

To address the historic reporting, a sub-contracted accountant was engaged to resolve the historic reporting issues under Brian’s overall watch. In due course, three years’ worth of accounts were produced.
To address the issue of the accounting systems in use, Brian reviewed the existing system and evaluated options of reinstalling and alternatively implementing Sage. The conclusion was that the original reasons for the selection were still valid, given an improved implementation. Brian then re-implemented the original system with a simplified and shared coding structure and operational approach for each business.
To reduce further the confusion, the shared services company was closed. Then the financial matters of each subsidiary company were allocated to a dedicated accountant rather than each accountant covering one aspect (eg purchase ledger) for all companies.
The individual company boards were then organised to meet on a meaningful pattern and provided with relevant and timely information.

The restructured group operated more effectively with a simplified structure. In time, some companies were sold to interested parties.
The monthly reporting enabled a clear understanding of the business position and focused decisive action, including adding titles and issues as well as cutting overhead costs.
One company was enabled to progress with developing its sales base beyond print media to include a market-leading web presence and a conferencing position. This stance enabled the company to weather the very severe impact to this sector of the economic downturn.

Clear thinking and clear timely reporting along the lines conceived and implemented by Brian are essential to enabling businesses to make the most of its economic circumstances.