Sector Focus
Know what the earnings depend on.
Duceris Group examines the commercial conditions supporting a forecast, from customer contracts to production capacity. We apply this assessment to the four sectors below, with attention to the factors relevant to each business.
Technology and Software
The economics of the customer relationship.
For software and technology-enabled businesses, we assess revenue at contract and customer level. Duceris Group examines renewal terms alongside the spending required to win and support each account.
Where subscription income forms part of the business model, we distinguish growth from new customers from changes in spending by existing customers. The analysis also considers the resources committed to product development and the timing of customer receipts.
- Revenue retention: How much revenue remains from an existing customer group after cancellations and changes in contract value?
- Acquisition economics: How long does the gross profit from a new customer take to recover the cost of acquiring that customer?
Business Services
The relationship between fees and delivery.
For project-led and contracted services, we examine profitability by client or assignment. The assessment considers fee arrangements alongside staffing costs, including reliance on subcontractors where relevant.
Duceris Group also examines the concentration of revenue among major accounts and the terms on which those relationships continue. For businesses dependent on specialist employees, we consider the financial effect of retaining the capacity needed to deliver contracted work.
- Staff utilisation: How much of the available working time generates fees, and what level does the forecast assume?
- Contract exposure: What proportion of earnings depends on contracts approaching renewal or subject to early termination?
Consumer and Retail
Product margins and the cash committed to stock.
We examine profitability by product and sales channel, allowing for returns and the costs of fulfilment. The work distinguishes changes in sales volumes from the effects of pricing and promotional activity.
Inventory analysis considers stock turnover and the exposure to markdowns. Duceris Group assesses the cash required ahead of seasonal sales, taking account of supplier payment terms and the timing of customer receipts.
- Channel profitability: What contribution does each route to market generate after its directly attributable costs?
- Stock exposure: How much cash is committed to slow-moving inventory, and what recovery value is assumed?
Industrial Businesses
Production capacity and the cost of maintaining it.
Duceris Group examines production forecasts against available capacity and the investment needed to support the proposed output. We distinguish expenditure on maintaining existing assets from spending intended to expand production.
The assessment also considers how changes in volumes affect the absorption of fixed costs. For businesses with long production cycles, we examine the funding tied up in work in progress and the payment milestones agreed with customers.
- Capital expenditure: How much of the proposed spending is needed to sustain current output, and when must it be incurred?
- Order economics: What do material costs and production lead times imply for the margin and cash requirement of the order book?
Discuss The Factors Specific to Your Business
Tell us which commercial issue is driving the assignment and how it affects your plans. We can identify the financial questions that warrant further examination.