Monthly Management Report Template (CFO Pack, KPIs, Covenants)

Monthly Management Report: [Organisation name] [Month YYYY]

Monthly management accounts and CFO pack for the executive team, and the source for the board finance report: headlines and commentary, KPI dashboard, income statement against budget and prior year, balance sheet and working capital, cash flow and net debt, liquidity and covenant headroom, segment review, forecast update, risks and judgements, and the definitions and reconciliations of every management measure. Written as original practice guidance; no standard prescribes management accounts, but facility agreements often require them, and measures that reach investors fall under IFRS 18 (management-defined performance measures, from 2027-01-01), the ESMA Guidelines on Alternative Performance Measures (ESMA/2015/1415) for EU issuers (and, per the FRC, UK listed issuers) and SEC Regulation G (17 CFR Part 244) with Item 10(e) of Regulation S-K for SEC registrants, including foreign private issuers. Requirements are referenced by number; obtain the standard or law for the normative text. Replace every [bracketed] value and every row marked Example. This is a document format, not financial, investment, tax, legal or accounting advice.

Document control

Approvals

Revision history

Contents

1. Headlines and CFO commentary
2. KPI dashboard
3. Income statement against budget and prior year
4. Balance sheet and working capital
5. Cash flow and net debt
6. Liquidity and covenant headroom
7. Segment review
8. Forecast update
9. Risks, issues and judgements
10. Management measures: definitions and reconciliations
11. Decisions and actions
12. Appendix: detailed schedules
13. Glossary and references

1. Headlines and CFO commentary

[Three to six bullets: month and year-to-date result against budget and prior year, main cause, cash and liquidity position, change to the full-year outlook, decisions requested.]

Example: Corvid Commerce Group, March 2027 and first quarter.

• Revenue for the quarter was EUR 36,200k, EUR 800k (2.2%) below budget and up 13.8% on the first quarter of FY2026. Subscription and services were ahead (EUR +150k each); commerce was EUR 1,100k behind: fewer high-priced hardware kits, clearance discounts on consumables and accessories, and 255.0k orders against 275.6k budgeted.
• EBITDA for the quarter was EUR 3,950k against EUR 4,100k budget (margin 10.9% against 11.1%). Operating expense savings of EUR 140k, mainly timing of marketing campaigns, offset part of the EUR 290k gross profit shortfall.
• March revenue was EUR 12,450k against EUR 13,000k budget; EBITDA EUR 1,370k against EUR 1,500k.
• Cash closed at EUR 27,900k, EUR 800k above budget, mainly because EUR 700k of capital expenditure slipped into Q2 (timing, not a saving); faster collections (EUR +600k) more than offset excess commerce inventory (EUR -350k). Liquidity headroom is EUR 46,900k against the treasury minimum of EUR 35,000k. All covenants are met with wide headroom: covenant leverage 0.58x against a 3.00x maximum (management net debt excluding leases 0.12x). Both facilities mature on 2028-06-30, now within 18 months of the forecast horizon; refinancing by 2027-06-30 is on track (section 6.3).
• Outlook: the Q1 rolling forecast lowers FY2027 revenue to EUR 158,800k (budget EUR 160,000k) and EBITDA to EUR 20,900k (budget EUR 21,600k), after reinvesting EUR 1,200k in a second US campaign.
• Decisions requested: approve buying commerce inventory to forecast, not budget, volume for Q2 to Q4 (D-004 in the rolling forecast), and confirm the second US campaign (D-001).

2. KPI dashboard

Status key: On track = within tolerance of budget; Watch = adverse beyond tolerance but recoverable in the year; Off track = adverse and not recoverable without action. Tolerance: [2% or EUR 250k, whichever is larger].

Checks for the example: gross margin 22,110 / 36,200 = 61.1%; commerce average order value 11,300 / 255.0 = EUR 44.31; budget orders 12,400 / 45.00 = 275.6k; services days 2,150 / 0.200 = 10,750; budget leverage (30,000 - 27,100) / (16,800 - 3,300 + 4,100) = 2,900 / 17,600 = 0.16x. Compute every ratio column (actual, budget and prior year) on the same LTM definition. KPI-015 is the management ratio; the covenant ratio on the facility definition is COV-001 in section 6.2. Liquidity headroom deducts EUR 1,000k of trapped cash in each column.

2.1 ARR movement (subscription)

Gross ARR churn including contraction, annualised: (230 + 700) x 4 / 86,000 = 4.3%, against the budget (1,600 + 3,700) / 86,000 = 6.2% from Annual Budget section 5.1; churn alone is 700 x 4 / 86,000 = 3.3% against a budget of 4.3%. Compare like with like: do not set a churn-only budget against an actual that includes contraction. Net revenue retention for the quarter on the opening base: (86,000 + 1,830 - 230 - 700) / 86,000 = 101.0%. Customer count: 4,000 opening + 215 new - 75 churned = 4,140.

3. Income statement against budget and prior year

Variance = actual minus budget for income lines and budget minus actual for cost lines, so a positive variance is always favourable. Costs are shown in brackets.

3.1 Month: March

Checks: 7,650 + 4,100 + 700 = 12,450, as recorded for March in Rolling Forecast (finance/rolling-forecast) section 8; 12,450 - 4,950 = 7,500; 7,500 - 2,880 - 2,040 - 1,210 = 1,370.

3.2 Year to date: January to March

Gross profit by segment, year to date: subscription 18,150 (79.8%) against budget 18,080 (80.0%); commerce 3,290 (29.1%) against 3,720 (30.0%); services 670 (31.2%) against 600 (30.0%). Total 22,110 against 22,400.

3.3 Commentary on the income statement

[One short paragraph per material variance: cause, whether it is timing or permanent, and the effect on the full year.]

Example:

• Commerce revenue (EUR -1,100k): 380k units sold against 390k budgeted, split into price (EUR -325k, clearance discounts on consumables and accessories to clear Q4 inventory), volume (EUR -318k) and mix (EUR -457k, fewer high-priced hardware kits). Orders were 255.0k against 275.6k and average order value EUR 44.31 against EUR 45.00. The full price, volume and mix analysis is in Variance Analysis (finance/variance-analysis). The rolling forecast treats the first-quarter gap as permanent and expects lower volume to continue (orders -3.6% for Q2 to Q4).
• Commerce margin (29.1% against 30.0%): clearance discounts reduced margin; the lost hardware kits carry only a 20% margin, so the revenue mix effect of EUR -457k costs only EUR -45k of gross profit. The clearance ended in March.
• Sales and marketing (EUR +350k): the US campaign launched in April instead of March (EUR 300k, timing) and travel and events were below plan (EUR 50k).
• Research and development (EUR -250k): contractors in Germany cover 15 delayed Vietnam hires (EUR 470k contractor cost less EUR 150k salary saving), partly offset by EUR 70k of tool licences billed in April; the forecast starts ten Vietnam hires in October instead of April to recover EUR 300k.
• Prior year: revenue growth of 13.8% is in line with the full-year budget growth of 14.3%; EBITDA grew 19.7%.

4. Balance sheet and working capital

4.1 Condensed balance sheet

Equity movement: 39,400 + profit 1,552 = 40,952 (translation differences below EUR 10k, not recorded in the example). Intangibles: 38,000 + capitalised development 1,450 - amortisation 600 = 38,850. Property, plant and equipment: 14,000 + additions 450 - depreciation 580 = 13,870. Right-of-use assets: 7,600 - depreciation 400 = 7,200. Lease liabilities: 8,000 - principal repaid 400 = 7,600 (lease interest of 90 is in net finance cost). Income tax payable: 1,200 + charge 518 - paid 825 = 893. Total liabilities and equity: 67,438 + 40,952 = 108,390.

4.2 Working capital measures

Example checks: 12,070 / 36,200 x 90 = 30.0; commerce cost of sales 11,300 - 3,290 = 8,010, and 5,400 / 8,010 x 90 = 60.7; 7,000 / 14,090 x 90 = 44.7; 16,000 / 90,800 = 17.6%. Budget (Annual Budget ASM-012): 12,670 / 37,000 x 90 = 30.8; 5,050 / 8,680 x 90 = 52.4; 7,000 / 14,600 x 90 = 43.2. At 2026-12-31, on Q4 2026 actuals (revenue 36,900, commerce cost of sales 8,500, cost of sales 15,130): 12,300 / 36,900 x 90 = 30.0; 4,700 / 8,500 x 90 = 49.8; 7,300 / 15,130 x 90 = 43.4.

Commentary: [Explain each movement beyond tolerance and the action.] Example: inventory days rose to 61 because purchase orders were placed for budget volumes (inventory EUR 350k above the budgeted EUR 5,050k); the commerce director will cut Q2 purchase orders by EUR 600k so that DIO returns to the budgeted 52 days by June. Receivables are EUR 600k below the budgeted EUR 12,670k after faster collection from marketplace partners; DSO is flat at 30 days against year end because Q1 revenue was below Q4. Budget trade working capital: 5,050 + 12,670 - 7,000 = 10,720.

Ageing of receivables and the reconciliation status of balance sheet accounts belong in the close file; see Account Reconciliation (finance/account-reconciliation).

5. Cash flow and net debt

5.1 Management cash flow, year to date

Change in working capital: inventories (700), trade receivables +230, other current assets (100), trade payables (300), contract liabilities +500, other payables and accruals (255); total (625). Cash conversion (operating cash flow before tax / EBITDA): 3,325 / 3,950 = 84.2%, against 78.7% in the budget (3,225 / 4,100). Variance bridge: 27,100 - 150 (EBITDA) + 600 (receivables) - 350 (inventory) + 700 (capex timing) = 27,900, as in Variance Analysis (finance/variance-analysis) section 8.

5.2 Net debt

Net debt bridge (excluding leases): opening 2,000 + free cash outflow 100 = closing 2,100. Covenant net debt: 2,100 + 7,600 + 1,000 = 10,700. The facility agreement includes lease liabilities and nets only freely available cash, so the covenant figure is the one used in section 6.2; the management measure is shown for continuity with the budget.

6. Liquidity and covenant headroom

6.1 Liquidity

Liquidity headroom is unrestricted cash plus undrawn committed facilities with more than 12 months to maturity (treasury policy definition). The revolving facility drops out of this definition from 2027-07-01 unless it is refinanced, which would cut headroom by EUR 20,000k.

The weekly view, including the lowest point, comes from 13-Week Cash Flow Forecast (finance/13-week-cash-flow-forecast). Limits are set in Treasury Policy (finance/treasury-policy).

6.2 Financial covenants

Covenants tested quarterly on a last-twelve-months (LTM) basis:

Management LTM EBITDA = FY2026 EBITDA 16,800 - Q1 2026 EBITDA 3,300 + Q1 2027 EBITDA 3,950 = 17,450. The facility definition (Consolidated EBITDA) adds back items the agreement permits: FY2026 covenant EBITDA was 17,800 (net add-backs 1,000, all arising after Q1 2026), and there are no add-backs in Q1 2027, so LTM covenant EBITDA = 17,800 - 3,300 + 3,950 = 18,450. LTM finance charges = 1,300 - 330 + 300 = 1,270. Net debt is covenant net debt from section 5.2 (10,700, including lease liabilities and excluding trapped cash).

EBITDA headroom: leverage breaches when covenant EBITDA falls below 10,700 / 3.00 = 3,567, a fall of (18,450 - 3,567) / 18,450 = 80.7%; interest cover breaches below 4.00 x 1,270 = 5,080, a fall of (18,450 - 5,080) / 18,450 = 72.5%. For comparison, the management ratio (MM-004, excluding leases) is 2,100 / 17,450 = 0.12x; never report it to lenders as the covenant figure.

COV-003 (debt service cover), COV-005 (capex) and COV-006 (guarantor coverage) are tested only in the quarterly certificate, so they are not shown here. The quarterly certificate delivered to the lenders follows Covenant Compliance Certificate (finance/covenant-compliance-certificate). Note any equity cure rights, definitional adjustments (for example pro forma acquisitions) and the next test date: [YYYY-MM-DD].

6.3 Going concern indicators

[State whether anything this month changes the going concern view: covenant headroom below [25%], liquidity below the minimum in any forecast week, facility maturity within 18 months, loss of a major customer.] Example: One indicator triggered (Medium). The term loan (EUR 30,000k) and the revolving facility (EUR 20,000k) both mature on 2028-06-30, within 18 months of the forecast horizon. Refinancing is planned for completion by 2027-06-30 under the Liquidity and Funding Plan (finance/liquidity-funding-plan); lender discussions started in March. Covenant headroom and forecast liquidity are well above their thresholds. The formal assessment, including this event, is in Going Concern Assessment (finance/going-concern-assessment).

7. Segment review

Central costs are [not allocated / allocated on revenue share]; the segment table shows contribution after directly attributable cost.

Checks: direct opex 9,800 + 2,900 + 310 = 13,010; total operating expense 13,010 + 5,150 = 18,160; budget contribution 9,300 - central 5,200 = 4,100.

7.1 Subscription platform

[Result, drivers, KPIs, actions.] Example: Revenue EUR 150k ahead of budget: EUR +250k at budget rates from early renewals and new logos signed in January, less EUR 100k of USD translation. Closing ARR EUR 90,800k (budget EUR 91,000k): March new-logo bookings were EUR 200k short, so the early-quarter gain does not carry into Q2. Contribution margin 36.7% (8,350 / 22,750). Payback on Q1 acquisition cohorts is tracked in Unit Economics Analysis (finance/unit-economics-analysis).

7.2 Commerce

Example: Revenue EUR 1,100k below budget on price, volume and mix (section 3.3). Contribution fell to EUR 390k (3.5% of revenue) against EUR 820k budget. Actions: end clearance discounting, cut Q2 purchase orders, renegotiate supplier rebates (opportunity RO-102 in the rolling forecast).

7.3 Professional services

Example: 10,750 billable days against 10,000 budget at an average EUR 200 per day; utilisation 74% against 72% target. No action.

8. Forecast update

The previous forecast equals the budget because this is the first forecast cycle of the year. The bridge from budget to forecast, scenarios and triggers are in Rolling Forecast (finance/rolling-forecast). [State the probability-weighted risks and opportunities not included in the forecast.] Example: net probability-weighted risk of EUR 110k (RO-101 to RO-104 in the rolling forecast: US customer delay EUR -900k and supplier rebate EUR +600k at 50%, inventory write-down EUR -300k at 20%, services day rate EUR +200k at 50%).

9. Risks, issues and judgements

9.1 Accounting judgements and estimates this month

Technical positions that need a memo are documented in Technical Accounting Memo (finance/technical-accounting-memo).

9.2 Business risks and issues

Impact bases: RSK-001 uses the forecast commerce revenue for Q2 to Q4, (51,400 - 11,300) x 10% = 4,010, at a 30% gross margin = 1,203. RSK-003 translates USD 18,480k of remaining US subscription revenue at 1.20 instead of the 1.12 forecast rate: 18,480 / 1.12 - 18,480 / 1.20 = 16,500 - 15,400 = 1,100; only about one sixth of US revenue is matched by dollar costs (Annual Budget ASM-014), so EBITDA falls by 1,100 x 5 / 6 = 917. State the base for every impact and keep it the same from month to month.

The enterprise-level register is maintained in Risk Register (compliance/risk-register).

10. Management measures: definitions and reconciliations

10.1 Definitions

Decide with the financial controller which measures count as management-defined performance measures under IFRS 18 for the annual and interim reports, and which are other alternative performance measures or operating metrics. Operating metrics (ARR, customers, orders) are defined once in Metric Definition (data/metric-definition).

10.2 Reconciliations

Constant currency revenue is EUR 700k below budget (37,000 - 36,300); EUR 100k of the EUR 800k reported shortfall is translation, all in US subscription revenue. Commerce is invoiced in EUR. The average EUR/GBP rate for the quarter was 0.86, equal to the budget rate, so UK revenue (GBP 5,762k) has no translation effect; CC-VN has no external revenue. When a second currency moves, add one line per currency rather than netting them.

10.3 Rules for measures that leave the company

11. Decisions and actions

12. Appendix: detailed schedules

12.1 Headcount by function

12.2 Capital expenditure, YTD

12.3 Results by legal entity, YTD

Check: revenue 24,000 + 6,700 + 5,500 = 36,200; EBITDA -180 + 3,080 + 620 + 530 + 100 - 200 = 3,950. UK at an average EUR/GBP rate of 0.86 (5,762 / 6,700); US at an average EUR/USD rate of 1.12 (6,160 / 5,500). Entity EBITDA is after intercompany charges (CC-US pays a platform fee to CC-DE; CC-VN earns its cost-plus fee from CC-DE). Against the annual budget split (CC-DE 107,600, CC-UK 30,000, CC-US 22,400), Q1 is 22.3%, 22.3% and 24.6% of the full year respectively. Commerce sales are invoiced in EUR by the German entity. Intercompany service charges from Vietnam are eliminated on consolidation; transfer pricing is documented separately.

12.4 Close quality

13. Glossary and references

13.1 Glossary

13.2 References

Standard and licence note

Structure aligned with common management reporting practice for monthly management accounts; no standard prescribes their content. Based on the ESMA Guidelines on Alternative Performance Measures (ESMA/2015/1415, reused with acknowledgement; this template is not endorsed by ESMA) and SEC Regulation G (17 CFR Part 244, a US public-domain work) for the treatment of measures that leave the company, paraphrased in original words. IFRS 18 is cited by name and effective date only; no IFRS text is reproduced or paraphrased. IFRS is a trade mark of the IFRS Foundation; this template is not affiliated with or endorsed by it. Corvid Commerce Group and every figure are fictional. This template is original text written for this collection. Check the current official versions of the cited standards and rules before use. Template licence: MIT.