The Financial Case

As electricity prices continue to rise fuelled by energy shortages, the challenge facing many Management Teams is defending margins in an increasingly competitive marketplace. Somar International personnel are working with a wide range of forward thinking Management Teams not only to offset the effects of the price rises, but in many cases increase levels of profitability on a sustainable basis. A few years ago energy saving projects were completed because they were a nice thing to do - many financial managers now recognise that energy efficiency strategies are moving from Nice" to to "Need" To - standing still is not an option your company is haemorrhaging cash now.

Saved Energy is pure profit, every penny or cent saved contributes directly to net profit - the introduction of a carefully considered energy saving policy using proven energy saving technology will offer you a low risk high reward investment opportunity - in fact it will offer you a guaranteed return on your investment - Where else can you put your money today and get that?

Financial Challenges

We understand that if you are responsible for your Company's finances it is likely that you are facing some very tough times ahead, and that you will be feeling the pressure of the responsibility placed in you by your shareholders to maintain profitability in spite of negative market forces - not an easy job at the moment.

Without stating the obvious - Global recession looms, the once reliable banking system is in turmoil, the stock market is highly volatile, it is a tough time for everyone - not even the really big companies are safe. It is likely that you will have tough decisions to make, and many of them may not be popular. Even if you are really thick skinned and hardened, we appreciate that this is not a pleasant part of your role - you and your colleagues then have to deal with the drop in Team morale that is inevitable in these circumstances.

If business is tight you will almost certainly have to adopt a stringent cost control strategy to sustain a healthy position, protect your profit margins or in extreme cases survive - possibly cut jobs, or cut resources.

If you are fortunate enough to have a cash rich business and you are responsible for safeguarding or investing your company's money, where are you going to put it?

In spite of this there is a great Opportunity

Energy efficiency is an area of the business over which you can get tighter control without making sacrifices - It is invariably an effective and popular cost control strategy. If you make an investment in proven Energy Saving Technology - it is low risk, it offers a high return on your investment, (thus directly contributes to profit development) and it keeps everyone happy.

Your Customers are happy as they view you as a Company who takes Corporate Social Responsibility seriously - taking steps to significantly reduce your carbon footprint even when there is a recession on. - recent studies have shown that more people are buying from organisations who have a green strategy and show acceptable levels of Corporate Social Responsibility.

Your Marketing team are sure to be happy too as they can make the most of this message as a PR headline - with surveys showing the consumer favour associated with Green businesses they are sure to want to use it as a promotional subject.

Your Shareholders will be happy - you are meeting their expectations: reducing costs, making a safe, controllable investment with working capital that will offer a guaranteed return which will either go some way to defending the erosion of your profit margins, or will increase the margins depending on your circumstances.

Your Operational team will be happy - the application of proven energy saving technology will not only in most cases improve working conditions and reduce maintenance requirements but will also may safeguard some jobs throughout the recession.

What is certain is that electricity is sure to be one of your major overheads and as we look forward shortages of supply will continue to drive prices up significantly - many of our customers have experienced a doubling of their energy price as they have come off of contractual fixed tariffs, your margins are being eroded: the solution is simply to use less but the key, however, is to use less and maintain the operational status quo. Somar personnel are specialists in this field and, if your circumstances are appropriate can show you how you can achieve this through the application of energy saving solutions which give you a guaranteed return on your investment.

Somar International Personnel have been trained to assess your circumstances and make a no obligation business case to you. They can provide you with a report that will not only show you at a glance the real added value that you can bring to the business, but an outline of all additional benefits which allows you to take your proposals straight to your management team for team approval without additional work. the report will show:

  • An evaluation of your current circumstances
  • Solution proposals, including savings illustrations
  • Capital outlay requirement
  • Return On Investment model
  • IRR (Internal Rate Of Return) model
  • NPV (Project Net Present Value)
  • Full list of environmental benefits, including carbon savings.
  • Full list of operational benefits

This will make it easy for you and your team to make simple, uncluttered decisions.

Energy saving attracts significant third party financial assistance, and your Somar Consultant will be able to tell you what you may be eligible for - Tax Breaks, Interest Free Loans, Grants, etc: it depends where you are located and what your circumstances are.

In addition to this, if cash is a premium in your business you may be able to apply your solutions without any capital outlay, and pay for the units as you make the savings: this will usually give you positive cash flow from day one.

Saving energy may not be as glamorous as increasing sales when it comes to providing sustainable profits for your business, but it is a much safer investment in today's volatile marketplace.

A Somar project may seem to be too good to be true  but the facts speak for themselves, and your solution is backed with Somar's satisfaction guarantee.

The question is not "can you afford to implement an energy saving strategy" but rather "can you afford not to"? Somar can make it easy for you.