Companies whose net assets have just moved sharply

Why a big move in net assets matters to fractional finance directors

Owner-managers usually reach a point where the finances outgrow their bookkeeper and their accountant, but a full-time finance director is out of reach. A significant change in the balance sheet, in either direction, is a natural trigger. Growth brings funding, forecasting and reporting questions. A smaller balance sheet brings questions about cash, costs and what to do next. In both cases a part-time finance leader is a sensible answer.

The value is clear. A fractional CFO retainer for one day a week runs around £2,800 to £4,300 a month (GoCFO), and two days a week doubles it. A single engagement can therefore be worth tens of thousands over a year, which justifies a considered, individual approach rather than a mass mailing.

The signal gives that approach a reason. Instead of writing to a company because it exists, you can write to a company because its filed accounts show a material change, and offer to help the owner make sense of it.

What the signal means

A company appears on this page when its latest filed accounts show a marked change in net assets, either upward or downward. The data comes from Companies House and other official public records. You can look at the two groups separately, as a growing list and a getting-smaller list, so your message can fit the situation.

The accounts describe a past year. The year they cover may have ended up to 21 months before you see the filing, and the record shows the date, so you can refer to it accurately.

What it does not mean

Net assets going up does not mean a company is profitable or healthy. It can reflect a revaluation, a share issue or a one-off gain. Net assets going down does not mean the company is failing. A dividend, or the sale of part of the business, can shrink a balance sheet in a perfectly healthy way. Neither movement tells you what the director wants or whether they have already hired help.

For that reason, do not open your letter with an interpretation of the numbers. Mention the filing date, say that you work with owner-managers at that stage, and ask a question.

How to use it

• Set two alerts. Save one search for growing companies and one for smaller ones, because the first conversation is different in each case.
• Filter to established businesses. Use company age and activity filters to exclude newer, dormant and inactive companies, so the list reflects businesses that can afford an adviser.
• Reach by post or corporate email. A registered address is always available for a letter. Limited companies can be emailed as corporate subscribers if you identify yourself and offer an opt-out. Sole traders and ordinary partnerships need consent, and calls must be screened against the TPS and CTPS.
• Be discreet. A director may be sensitive about a falling balance sheet. Keep the first contact neutral, factual and brief. Named directors are personal data, so respect any objection straight away.

NewcoSignal does not provide email addresses or phone numbers. The registered office and a named director are what the public record holds. Further signals, such as new share issues and director changes, are planned and will be described on this page when they go live.