Building Success: Elevating Construction Excellence with Adsum

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fortitudo-property-developers

Supporting growth in construction and property development industries

Fortitudo specialises in creating luxury homes in prime South England locations, focusing on beauty, functionality, and top-quality living with excellent amenities.

With Adsum, Fortitudo were able to save over 200 days in waiting for HMRC repayments, with the total exceeding £2.5M.

“The amount of stuff that Olya* has helped me with! That woman – she has got the patience of a saint! I love her, she’s brilliant, honestly!”

*Olya is one of Adsum’s best VAT and Corporation Tax specialists

Client profile

Company: Fortitudo

Industry: Construction and property development

Background: With almost four decades of experience in developing property, Fortitudo specialises in identifying prime sites and developing luxury homes in desirable South England locations, focusing on beauty, functionality, and top-quality living with excellent amenities.

Challenge:
Fortitudo were looking to expand their operations by taking on more developments and faced financial challenges common in the property development and construction industries, impacting their ability to expand as fast as they wanted to. The need for a streamlined financial solution led them to explore Adsum’s VAT advance services.

Adsum's solution

Adsum, specialising in VAT advances for UK businesses, emerged as a strategic financial partner for Fortitudo. The approach was twofold:

  • Pre-completion VAT advances on all site purchases – Adsum advanced the VAT payable on each site purchase prior to completion, alleviating the cash flow challenges typically faced during the acquisition phase and reducing the need to take on further debt. By ensuring the availability of funds for VAT on property purchases even before completion, Fortitudo was able to maintain momentum in their expansion efforts without financial strain.
  • Ongoing support during the development phases – Beyond the initial acquisitions, Adsum provided ongoing support through Instant VAT® refunds. Allowing Fortitudo to recover VAT on development costs, legal fees, and other expenses immediately upon submitting their VAT returns and then reinvest those funds into their ongoing projects much faster.

By leveraging Adsum’s services, Fortitudo were able to recycle their funds much faster, saving 203 days of waiting for HMRC, with the total exceeding £2,500,000.

How Adsum helped

Since June 2022, Fortitudo has consistently utilised Adsum’s VAT advance services, showcasing the reliability and effectiveness of this financial solution in their day-to-day operations. The consistent use has contributed to Fortitudo's growth, stable revenue streams and improved gross margins.

Enhanced liquidity

The impact of Fortitudo's site acquisitions and development on their cash reserves was reduced - freeing them up to focus on new opportunities.

Improved gross margin

Adsum’s InstantVAT services enabled Fortitudo to optimise material costs by providing upfront payments. This financial flexibility allowed them to negotiate better deals with suppliers and take advantage of bulk purchase discounts, improving their project margins.

203 days saved

The total days saved due to Adsum’s InstantVAT services stand at a total of 203 days. This substantial reduction in administrative timelines allowed Fortitudo to focus on project execution and strategic growth initiatives.

Reduced debt

With Adsum's InstantVAT services, the funds for the VAT element were already secured with a best price guarantee, removing the need to source additional debt for each property acquisition.

How Adsum can help you

The collaboration between Fortitudo and Adsum exemplifies the positive outcomes that arise when innovative financial solutions meet the specific needs of the construction industry. Adsum’s VAT advances not only addressed immediate financial challenges but also contributed to the overall efficiency, stability, and growth of Fortitudo in the competitive construction landscape.
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