FRP develops financial model to support investment in HV Energy Systems

FRP’s Financial Advisory team developed a financial and operational model to support investment and future growth for HV Energy Systems.

Background

HV Energy Systems (“HVE”) operates in the electricity infrastructure sector, specialising in the installation and operation of equipment required to connect energy generation facilities to the transmission grid. Following several years of sustained growth, the shareholders were seeking investment to support the next phase of the business’s development.

FRP was engaged to develop a financial model to support the transaction and the company’s ongoing financial and operational planning.

Action

FRP worked with management to develop a dual-purpose tool, capable of providing detailed short-term operational forecasting where project information is available, while also facilitating longer-term, higher-level planning.

The model incorporates charts and dashboards combining financial and operational KPIs to provide management and stakeholders with a clear and comprehensive view of HVE’s performance.

Outcome

The model aided the transaction process, highlighting HVE’s growth and profitability trajectory and helping potential buyers understand and interrogate its projections.

The dynamic model works effectively with HVE’s existing customer base and provides flexibility and capacity to accommodate future growth in both projects and customers.

Freddie James, Director at HV Energy Systems, said: “FRP produced a comprehensive, fully integrated 5 year forecast model that is carefully structured to allow us to use on an ongoing basis going forward. This is a high-quality piece of work that will continue to add value well beyond its initial delivery.”