The Lindhorst Group is active in four (very different) industries. In order to better manage the Lindhorst Group’s cash flows, the company recently started using Ltc|treasury.
Customised for success
As a family-run company, the Lindhorst Group focuses on long-term success. The company relies on efficient system support to ensure continuity and performance in its own actions. Organizationally, the group – which employs over 2,000 people – is divided into two legally independent groups. The group of companies consists of four divisions, which can be assigned in terms of their content to the real estate, healthcare, agriculture and renewable energy segments. Each of the group’s business areas has its own processes and requirements. In the Real Estate division, for example, differentiated long-term liquidity planning is carried out on the basis of historical cash flows. In other areas, the Treasury team takes a different approach. However, an overview of the entire liquidity is essential for Lindhorst.
For this reason, the company decided to rely on a new solution: In order to be able to plan and control finances and liquidity in a structured manner, the Lindhorst Group uses a treasury management system (Ltc|treasury). It simplifies the processes in cash management and liquidity control, reduces the necessary effort and complexity for the employees in Treasury and provides the desired overview. Its implementation took around twelve months.
When selecting the future treasury management system, the decisive factor for the team was that it could provide a complete picture of liquidity across the entire group of companies. Each of the four divisions has different daily routines, which must be taken into account promptly in the planning. In addition, the two legally independent groups should be mapped in the new treasury system, but should remain organizationally separable. In the new solution, they can now be given the required authorizations separately, while the Treasury team can still keep an eye on both groups at the same time. All processes relevant to cash flow are automatically taken over from the accounting and controlling software.
In order to obtain a complete and consistent picture of the group’s financial and liquidity situation at all times for long-term corporate planning, the Lindhorst Group’s treasury management today presents the financial status and short-term planning, maintains and settles the clearing accounts from cash pooling and clearing, and integrates loans and interest hedging transactions. All the Lindhorst Group’s divisions are connected to the system.
Lindhorst also uses the TMS Ltc|treasury to manage loan and collateral agreements. In future, guarantee management will also be carried out in the treasury system. The introduction of the collateral management module is still planned as part of the conversion of the previous property management system in order to establish a direct allocation between property, land charge and financing in one solution in the future – especially in the agricultural and real estate sectors. In addition, an analytical module (Ltc|analytics) as a dynamic reporting tool for the financial sector is to be further integrated.
For the Lindhorst Group, the greatest advantages of the new system are that all information is now bundled in a central database. The treasurers can always fall back on reliable figures that can be plausibly understood. It is important that the system is intuitive for the users.