Practical fractional CFO support through a period of significant financial pressure
When an established ICT business experienced a major decline in revenue, its directors needed more than financial reports. They needed an experienced commercial finance professional who could quickly establish the company’s position, identify the available options and help guide the business towards greater stability.
Richard van Lyf joined the company as its fractional CFO, working an average of two days per week over five months.
Through detailed cash-flow forecasting, targeted cost reductions, stronger financial controls and a disciplined review of the sales pipeline, Richard helped the business return to positive monthly operating cash flow and establish an identified pathway towards recovery.
A business facing significant change
The ICT business provided hardware and software support to a federal government agency under a major contract.
Over three years, its annual revenue had fallen from approximately $26 million to below $8 million. Various internal and external headwinds had contributed to the decline, but the company’s cost base and financial management processes had not adjusted quickly enough to its changed circumstances.
By the time Richard became involved, the company was operating deep within a $300,000 overdraft facility and did not have reliable cash-flow forecasting.
The directors were understandably concerned. They needed to know:
- How the company’s cash position was likely to develop.
- Whether the existing funding facilities were sufficient.
- Which costs could be reduced without damaging essential capabilities.
- Which opportunities in the pipeline could deliver acceptable margins.
- Whether compliance requirements were being managed.
- What actions they needed to take to protect the business and remain properly informed about their position.
Richard’s first priority was visibility
Richard’s approach began with establishing a reliable financial picture.
He developed a detailed forecasting model that showed the company’s expected cash position and highlighted the critical financial risks facing the business. This replaced uncertainty with clearer information about the company’s immediate position and likely future cash requirements.
Richard also introduced regular cash-flow forecasting and a targeted management reporting dashboard. This allowed the directors to monitor:
- Current and projected cash requirements.
- Remaining capacity within the overdraft facility.
- Progress against the recovery plan.
- The financial effect of proposed decisions.
- Emerging risks requiring attention.
- The company’s position in relation to its obligations.
The directors were kept informed throughout the engagement, enabling them to make difficult decisions using current and credible financial information.
Bringing costs into line with the business
The decline in revenue meant the company’s cost structure was no longer appropriate for the size of the business.
Richard implemented cost-reduction initiatives across all major areas of the organisation. The objective was not simply to cut spending indiscriminately, but to reduce the financial burden while protecting the operational capabilities the business needed to trade and recover.
This required a commercial understanding of which costs were essential, which could be reduced and where the business needed to preserve capacity for future opportunities.
Identifying and stopping revenue leakage
Richard also identified material revenue leakage within the business and implemented measures to stop it.
This was an important part of the recovery process. Generating more sales would not have solved the underlying problem if revenue continued to be lost through weaknesses in existing commercial and operational processes.
By addressing leakage alongside cost reduction, Richard helped improve the benefit the company received from the revenue it was already generating.
Focusing on revenue that could produce a return
The business still had potential opportunities in its pipeline, but not every opportunity offered an acceptable financial outcome.
Richard reviewed the pipeline to identify the opportunities with viable margins. This helped management direct its limited resources towards work that could make a meaningful contribution to cash flow and recovery.
The focus shifted from pursuing revenue for its own sake to understanding the commercial value, cash-flow implications and margin potential of each opportunity.
Supporting informed and responsible decisions
Throughout the engagement, Richard kept the directors informed of the company’s position through regular forecasting and targeted reporting.
He also helped ensure that compliance obligations and associated risks were identified and appropriately managed.
This gave the directors a clearer understanding of the company’s financial circumstances and helped them demonstrate that they were actively monitoring the position, considering the available options and responding to emerging risks.
The outcome
By the conclusion of Richard’s five-month engagement in March 2026, the business had returned to positive monthly operating cash flow.
It also had:
- A detailed and reliable cash-flow forecasting model.
- A focused management reporting dashboard.
- A cost base that was better aligned with its revenue.
- Improved controls over revenue leakage.
- A clearer understanding of the viable opportunities in its pipeline.
- Better visibility over compliance and financial risk.
- An identified trading pathway towards recovery.
The result did not come from one dramatic measure. It came from Richard bringing financial visibility, commercial discipline and structured decision-making to a difficult situation.
About Richard van Lyf
Richard is a CFO On-Call Partner with more than 20 years of commercial finance experience and approximately eight years working as a fractional CFO.
He has worked across ICT, technology, government contracting and other complex commercial environments. His experience includes cash-flow management, financial forecasting, business recovery, contract and tender pricing, margin improvement, compliance oversight and helping directors make informed decisions under pressure.
Richard’s approach combines detailed financial analysis with practical commercial action. He works alongside owners and directors to identify what is really driving performance, prioritise the most important issues and establish a realistic path forward.
Is your business facing cash-flow or margin pressure?
A business does not need to be in crisis to benefit from better forecasting and financial visibility.
Early warning signs can include:
- Increasing reliance on an overdraft or other short-term funding.
- Falling revenue without corresponding reductions in costs.
- Uncertainty about future cash requirements.
- Revenue growth that is not producing stronger cash flow.
- A sales pipeline with unclear margins.
- Directors lacking timely financial information.
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