Margin ArchitectureExample · invented company and figures
HARBORLINE SERVICES · AUGUST 2026Monthly FP&A pack — example
Revenue exceeded budget by $5k, but EBITDA finished $8k below plan. Profit did not convert fully into cash: receivables and prepayments absorbed $43k.
Harborline Services is invented. A reconciled example of performance, balance sheet, cash and commentary. All figures are synthetic. One entity. USD thousands. This is not a client or a universal scope promise.
Profit and loss.
| Line | Actual | Budget | Δ | July |
|---|---|---|---|---|
| Revenue | 690 | 685 | +5 | 653 |
| Direct costs | 410 | 405 | +5 | 386 |
| Gross profit | 280 | 280 | +0 | 267 |
| Operating payroll | 110 | 108 | +2 | 107 |
| Other operating expenses | 81 | 75 | +6 | 76 |
| EBITDA | 89 | 97 | -8 | 84 |
| Depreciation | 10 | 10 | +0 | 9 |
| Interest | 6 | 6 | +0 | 6 |
| Income tax expense | 14 | 16 | -2 | 13 |
| Net income | 59 | 65 | -6 | 56 |
Δ = actual less budget. A positive expense variance is unfavorable. EBITDA = revenue − direct costs − operating payroll − other expenses. EBITDA excludes depreciation, interest and tax; it is not cash.
Where performance changed.
| Segment | Revenue | Cost | Gross profit | Margin | GP Δ vs. budget |
|---|---|---|---|---|---|
| Managed services | 420 | 235 | 185 | 44.0% | +13 |
| Project delivery | 180 | 126 | 54 | 30.0% | -16 |
| Support | 90 | 49 | 41 | 45.6% | +3 |
| Total | 690 | 410 | 280 | 40.6% | 0 |
Project gross profit was $16k below budget; managed services (+$13k) and support (+$3k) offset it. Hours, rates and mix detail are needed to attribute operational causes.
The closing position.
| Line | August | July | Δ |
|---|---|---|---|
| Cash | 253 | 260 | -7 |
| Accounts receivable | 520 | 485 | +35 |
| Prepayments | 48 | 40 | +8 |
| Fixed assets, net | 410 | 396 | +14 |
| Total assets | 1,231 | 1,181 | +50 |
| Accounts payable | 215 | 203 | +12 |
| Accruals | 78 | 84 | -6 |
| Debt | 320 | 335 | -15 |
| Equity | 618 | 559 | +59 |
| Liabilities and equity | 1,231 | 1,181 | +50 |
Assets equal liabilities plus equity in both months. Equity increased by the month’s $59k net income; this example includes no dividends or capital contributions.
From profit to cash movement.
| Movement | August |
|---|---|
| Opening cash | 260 |
| Net income | 59 |
| Depreciation add-back | 10 |
| Increase in receivables | -35 |
| Increase in prepayments | -8 |
| Increase in payables | 12 |
| Decrease in accruals | -6 |
| Cash from operations | 32 |
| Capital expenditure | -24 |
| Debt repayment | -15 |
| Net cash movement | -7 |
| Closing cash | 253 |
Opening cash 260 + operating cash 32 − capex 24 − debt repayment 15 = closing cash 253. Depreciation is added back because it uses no cash. Interest and tax paid are assumed equal to the monthly expense; tax is settled with no separate tax balance.
What we know. What is still missing.
Verified variance
The $8k EBITDA shortfall is explained by revenue +5, direct costs −5, payroll −2 and other expenses −6. The operational cause of the expense variances needs additional detail.
Question for the review
Receivables increased $35k. The report identifies the movement; without an aging schedule it cannot attribute it to overdue balances or weaker collections.
Example checks
Segments sum to the P&L; assets equal liabilities plus equity; cash movement ties to the balance sheet; net income explains the change in equity.
Scope and limits
Invented company, no client data. Figures come from the downloadable synthetic files. There is no forecast or audit opinion. The checks establish internal consistency, not evidence about a real business.
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