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Fictional business and jobs. Real ONS inflation data. Amounts in GBP.

Example financial report

Harbour Plumbing & Heating

Walk through the story of a fictional Bristol plumbing firm: an owner on the tools, three engineers and an office coordinator.

5people
3trading years
3,376 example jobs
Read the complete report summary

All six chapters, without using the interactive controls. These figures describe the fictional example business, not a customer result. Amounts exclude VAT.

1. Overview

In 2025 the example business earned £530,000 in revenue, £146,300 in gross profit and £53,500 in operating profit. Gross profit deducts materials, field payroll and subcontractors. Operating profit also deducts overheads; it is not cash flow or the owner's take-home pay.

2. Jobs and margins

Compare both the amount of profit and the margin. A large invoice does not necessarily leave the largest share after costs. Individual jobs can differ from their category average.

  • Boiler replacements: revenue £180,200, gross profit £21,517 (11.9% gross margin), operating profit £6,698.
  • Repairs & call-outs: revenue £148,400, gross profit £66,103 (44.5% gross margin), operating profit £22,540.
  • Bathroom installations: revenue £132,500, gross profit £15,376 (11.6% gross margin), operating profit £4,586.
  • Servicing: revenue £68,900, gross profit £43,304 (62.9% gross margin), operating profit £19,676.

3. Trading history

Compare revenue with operating profit across the same example team. Higher turnover alone does not establish that the business is better off.

  • 2023: revenue £500,000, gross profit £159,000, operating profit £82,000.
  • 2024: revenue £525,000, gross profit £162,500, operating profit £75,000.
  • 2025: revenue £530,000, gross profit £146,300, operating profit £53,500.

4. Inflation and costs

The report separates nominal growth from purchasing power using ONS CPIH data. Compare inflation-adjusted turnover with the firm's actual costs. Higher materials spending may reflect more jobs or a different job mix, so it is not automatically evidence of materials inflation.

The interactive chapter shows the index source and comparison year. General inflation is context, not a replacement for the business's own invoices and wage records.

5. Pricing scenarios

Test a quote increase alongside fewer accepted jobs and changed materials costs. A higher price can increase contribution per job while reducing total work won. The simulator makes those assumptions explicit; it does not predict customer demand or guarantee profit.

6. Method and assumptions

The example allocates field payroll by job hours and overheads using stated cost drivers. Compare alternative overhead allocations to see whether the conclusion depends on the method. Payroll includes paid non-job time. Costs are allocated once; operating profit is before finance costs and corporation tax.

Figures shown on screen round to pounds while calculations use pence. A real report requires the customer's records, labelled estimates, review of assumptions and human sign-off before delivery.

Adjust the figures 2025 · Amounts (£)
Financial figures

GBP, excluding VAT. Screen figures round to pounds; calculations use pence.

Chapter 1 of 6

Start with the overall result. Compare what each type of work brings in with what it leaves behind.

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YOUR BUSINESS, UNDER THE SURFACE / 2025

Turnover held up. The cost of delivering it didn’t.

See the work that fills the diary and the work that funds the business. Every figure comes from the example job ledger.
Revenue£530,000

£530,000 · +6.0% vs 2023

Gross profit£146,300

27.6% gross margin · before overheads

Operating profit£53,500

10.1% operating margin · after overheads

Completed jobs1,143

5,050 job-attributed hours

Which work earns its share?

Revenue shareGross profit share

Revenue share uses total revenue; gross profit share uses company gross profit. Each series sums to 100%. Losses extend left of zero. Select a job type to see its records.

01 / THE JOB MIX

Big invoices. A smaller slice of profit.

Boiler replacements contribute 34.0% of revenue, but 14.7% of gross profit. Materials and delivery time absorb much of the invoice.

02 / THE FIRST QUOTES TO REVIEW

Bathroom installations

£183 operating profit per job on average, with a 3.5% margin. Inspect the assumptions before changing the mix.

REVENUE → GROSS PROFIT → OPERATING PROFIT

Where did the money go?

Select a line for its definition.
Gross profit share is not gross margin.

Boilers generate 14.7% of company gross profit. Their own gross margin is 11.9%: £21,517 gross profit ÷ £180,200 revenue.

Now see what your own numbers say.

Up to five years of trading. One financial report. A human walkthrough.

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