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Banking crisis exposes guesswork gap in revenue forecasts; 83% of directors feel they cannot trust the sales forecasts they are given; 72% of directors apply a discount factor of between 5% and 90% to sales forecasts; ......

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M2 PRESSWIRE-22 January 2009-Visual Insight: Banking crisis exposes guesswork gap in revenue forecasts; 83% of directors feel they cannot trust the sales forecasts they are given; 72% of directors apply a discount factor of between 5% and 90% to sales forecasts; 53% of directors believe they do not have the financial resources to survive a 10% shortfall in revenue for three consecutive months; 50% of directors believe their bank are unlikely provide extra support if it is needed; NXDs lead the way with the need to focus on cash management; Research highlights cash management and director compliance issues(C)1994-2009 M2 COMMUNICATIONS LTD

RDATE:22012009

Many businesses are running the risk of running out of cash simply because they rely on inaccurate revenue forecasts according to research published today. It highlights that 83% of directors do not trust the sales forecast they are given. As a result almost three quarters (72%) apply a discount factor of up to 90% - with the average discount factor being 34%. The cash implications of this level of potential inaccuracy are significant as over half (53%) of directors do not believe they have the cash resources to survive a shortfall in revenue of just 10% for...

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