Fernhill Creative Ltd · September 2026
The month at a glance
What moved and why
- Revenue up £12.0k on August, driven by the Harbour Foods campaign launch (+£9.5k) and a new Kestrel Logistics retainer phase.
- Gross margin recovered to 37.3% as fewer contractor days were billed to fixed-fee work. Quarter to date it is 32.0%, held down by two accounts.
- Contractor spend is £31.2k, up 30% in three months (June £24.0k). Most of the increase sits on Orbit Fintech and Linden Retail.
Exceptions needing a decision
- Critical Cash falls to £32k in w/c 21 Dec, below the £40k buffer, when December payroll lands before seasonal collections.
- Critical Linden Retail is loss-making (−3.9% margin) and its £12.0k invoice is 97 days overdue under a scope dispute.
- Watch Orbit Fintech margin is 11.5% against a 35% target. Review contractor allocation before the next phase is quoted.
Actions this month
Agreed on the review call. Status is tracked in next month's report.
| Issue | Recommended action | Owner | Due |
|---|---|---|---|
| Cash below £40k buffer in w/c 21 Dec | Invoice the Harbour Foods December milestone on 1 Dec at 14-day terms; move one contractor payment run to w/c 4 Jan | Founder | 31 Oct |
| Linden Retail loss-making; £12.0k invoice 97 days overdue | Founder call to settle the scope dispute; pause new work until resolved | Founder | 24 Oct |
| Orbit Fintech website rebuild over budget | Review contractor allocation; requote phase 2 at a margin of at least 35% | Delivery lead | Before phase 2 quote |
| Debtor days 43 against a 35 target | Weekly chase list sent to account managers every Monday | Operations | Ongoing |
Revenue and costs
Monthly, £ thousands, last 12 months
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Client profitability
Gross margin after delivery cost (staff time and contractors), July to September 2026
Project profitability
Two clients split by project, July to September 2026. The client average hides very different projects.
| Client · project | Type | Revenue | Delivery cost | Margin |
|---|---|---|---|---|
| Harbour Foods · Campaign launch | Fixed fee | £58.0k | £27.0k | 53.4% |
| Harbour Foods · Social retainer | Retainer | £38.0k | £25.0k | 34.2% |
| Orbit Fintech · Website rebuild | Fixed fee | £34.0k | £36.0k | −5.9% |
| Orbit Fintech · Brand refresh | Fixed fee | £18.0k | £10.0k | 44.4% |
Orbit's 11.5% client margin is entirely the website rebuild: 22 unplanned contractor days on a fixed fee. The brand work is healthy.
How delivery cost is calculated
Team time from timesheets at a loaded hourly cost (salary plus employer costs), plus contractor invoices coded to the project. Where timesheets are missing, hours are estimated from the project plan and marked as estimates. Overheads are not allocated to projects.
Receivables ageing
Outstanding at 30 September 2026, £207.0k total · expected October collections £130k
Overdue invoices over 30 days
| Client | Invoice | Amount | Days overdue | Expected | Action |
|---|---|---|---|---|---|
| Linden Retail | INV-1042 | £12.0k | 97 | At risk | Founder call on scope dispute |
| Orbit Fintech | INV-1077 | £9.0k | 68 | w/c 19 Oct | Awaiting PO; escalate to CFO |
| Brightwater Health | INV-1101 | £14.5k | 41 | w/c 12 Oct | Approved, in payment run |
| Kestrel Logistics | INV-1110 | £7.5k | 35 | w/c 12 Oct | Reminder sent 2 Oct |
13-week cash forecast
Closing bank balance by week, £ thousands. Opening balance £86k on 2 October.
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Assumptions
- Collections follow the last six months' payment pattern by client; Linden Retail's overdue £12.0k is excluded.
- Payroll of £78k on 28 Oct, 27 Nov and 22 Dec (paid early before the holidays).
- VAT for the July to September quarter, £38k, due 7 November.
- Contractors £8k and overheads £6k per week, flat.
- No new revenue beyond signed work; December collections reduced for client holiday closures.
Options to cover the December low point
| Option | Effect on w/c 21 Dec | Low point after |
|---|---|---|
| Invoice Harbour Foods December milestone (£18k) on 1 Dec, 14-day terms | +£18k | £50k |
| Move one contractor payment run (£8k) to w/c 4 Jan | +£8k | £40k |
| Both | +£26k | £58k |
Assumes Harbour Foods agrees the earlier invoice date and pays on terms. Linden Retail's £12.0k remains excluded until the dispute is settled.
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