Client

Our client is one of the largest medical imaging service providers across Australia and New Zealand, providing multiple imaging types across a wide range of sites.

Brief

The brief was to develop a rolling, budgeting & planning model of the consolidated business, with each site modelled on a dedicated basis and rolled up into regions which in turn were rolled up into brands.

The model suite and software implementation needed to support:

• bottom up modelling of revenue, in particular volume on a daily exam rate basis by exam type;
• detailed bottom-up build-up of salaries & wages by individual;
• detailed fixed asset register style forecasting of assets;
• locking down of budget and performing budget variance analysis each month;
• comprehensive consolidation at whole of business, brand, and region levels; and
• the output of daily budgets for volume and revenue to be loaded into Tableau.

Solution

Our solution comprised of multi-workbook suites for each brand where a workbook represented a region. The brand workbook consolidated the regions and presented fully integrated 3-way financial statements. A separate Group model consolidated each brand accounting for eliminations.

The region model was based around the following key modules:

• site – site revenue and expense forecasts, built bottom-up, allowing for weekend variances in volume-based assumptions with income statement reporting down to EBIT;
• payroll – build-up of all payroll related expenses by individual with pay increase related to various EBAs;
• fixed assets – individual build-up of each asset to forecast depreciation for existing assets and capex;
• import & export – robust import and export structure to transfer data between models; and
• reporting – board pack quality presentation of financial data and key reporting metrics.

Modano Benefits

When combined with the Modano software, the model designed allowed the client to self-service the following automated model development processes:

• monthly and annual roll-forward of historical-forecast model split;
• the locking down of budgets and performing variance analysis at all consolidated levels and at each site;
• adding a new exam type across the model suite;
• adding an exam type to a site;
• adding a site to a region;
• adding a region to a brand; and
• adding a brand to the entire model suite.

Along with the client being able to self-service the above processes, the model has been upgraded to include, forecasting of WIP assets, updates due to IFRS16 and higher-level annual model to allow for quick analysis of potential, site and brand acquisitions.