As the financial year draws to a close, the Goodfellows team is talking figures. This is the time of year that finance director David Johnson comes into his own as he, managing director Norman Deas and operations director Philippa Forde try to predict what the next 12 months will bring.

Johnson, ever the prudent financial manager, urges caution. Although Deas is confident about several pieces of business that are currently at tender stage, Johnson won't include them in forecasts. "We don't put anything in the budget until we've got a definite start date," he says. "The only people we're kidding are ourselves."

But that doesn't dampen Deas's confidence. "The budget for this year was £2.2m [turnover]," he says. "That'll be £2.5m by the end of this financial year and it'll be £2.7m next year just on existing business."

The increase for 2002 comes from higher takings at Hendon School, triggered in part by the gating policy, and the fact that predictions for the three education contracts that started in May 2000 (Selhurst, Stanley Tech and Templars) can be based on a full year's performance. In addition, care homes that are due to open this month and next have also helped to boost turnover.

Indeed, Deas has a turnover figure in his own mind of £3m for the next financial year.

"There are more care homes coming through in July/August," he says, "and we're hopeful about a couple of jobs in Kent - two high schools, both with local authority catering. We'll probably hear about them in the next few weeks, and the two contracts could turn over £250,000."

The college of further education tender is still bubbling along, and a decision is due by 12 April. Goodfellows has presented a second set of plans suggesting a £100,000 capital investment by the client.

"They didn't balk at it because it would be part of a £2m rebuilding project," says Deas. "But with further education college funding changing, nothing will happen for at least a year, so the new plans use equipment that could be transferred. I've got a good feeling about it."

Not all tenders are worth pursuing, of course. Deas describes one that he didn't hesitate to reject. "It was a fixed-cost contract," he recalls. "The client wanted a five-year financial plan assuming a cash cafeteria system, another plan for a cashless card system.

"They wanted the contractor to take all the risk but didn't give any of the TUPE (Transfer of Undertakings (Protection of Employment) Regulations 1981) information, and said that if the equipment broke down, the school would try to replace it but in the intervening time the contractor would pay for kit. I'd be interested to see who takes that one on."

Another approach starting to cause consternation among contractors is a "winner pays all" system. Deas explains: "Whoever wins the tender pays the consultant's fee, so you could end up working for nothing for the first year. For schools, the fee would be about £6,000, for colleges £15,000-£20,000.

"A big company might go for it to boost turnover and they'd probably get the fee back over the life of the contract, but it's a risk."

If Deas's confidence proves well-founded, Goodfellows will take on an area supervisor in September and another part-time assistant in Ely, promoting Peter Nancollis to office manager. "The more work we take on, the more paper there is to be processed," says Johnson. "All the care homes and schools get an invoice from the supplier every time they buy a tin of beans and all those invoices are processed here."

Johnson is updating the computer system in Ely so that more administration can be done electronically, but the mass of paper accumulating in the Ely office is staggering.

If it's not setting budgets or chasing business, the team is getting to grips with the mass of new legislation affecting small businesses such as Goodfellows. Gordon Brown's recent Budget stated that child benefit would be paid through the payroll, thus creating yet more paperwork, while processing Working Family Tax Credit costs the firm an estimated £7,000 a year, says Johnson.

"We're in a business that's ripe to be clobbered for Working Family Tax Credit because dinner ladies tend to be at the lower end of the pay scale. Physically doing it will be a major problem and we have to pay it all upfront so there are cash-flow implications."

Changes to regulations surrounding company cars, paternity leave and particularly part-time workers - who are now entitled to exactly the same rights as full-time workers - are also having an impact.

Deas is considering a way round the part-timer question. "We can pay them an enhanced rate as recompense for pension and holiday rights," he says. "But this takes time and there's going to be lots more legislation."

Pensions have also been keeping Johnson busy. The company has set up a contributory scheme, open to staff who have been with the company more than three months. Deas has been pleasantly surprised by the 20% take-up of the scheme, which requires the employee to contribute 3% of earnings and Goodfellows to match the sum.

"It's encouraging - it shows commitment from the staff and shows that we are a caring employer," he says. A spin-off is that each member of the scheme receives automatic life cover worth twice his salary.

However time-consuming such matters are, though, they are taking Goodfellows in a positive direction, as Deas explains.

"Our next major project is Hospitality Assured," he explains. "It's the HCIMA's scheme and sits somewhere between ISO 9002, which is geared to manufacturing, and Investors in People, which is very general.

"We've got many of the systems in place but we need to extend them to fit their criteria," says Deas. "It'll probably take a year to 18 months to get." An audit for the scheme will involve quality assessments, as well as an examination of how the business handles clients and communication.

Why do it? "You have to be careful not to forget your core business," says Deas, "but if systems help to motivate the workforce, they are definitely worthwhile."