Large Engineering Mining Support company

Customers included BHP Billiton

Previous Position
Sales of $4.5M
Loss of $500K
Liabilities of $4M.
Assets of around $1M - No Trained Management - All Tradesmen.

This business went into the red after large debtor writes downs relating to project work which was unprofitable. A key and immediate change in operations was to reclassify the main service contracts into “do and charge” work performed with major mining companies, in conjunction with bringing together accurate costing, financial reporting and management review processes. A 10% price rise was applied immediately.

The management team was restructured, with quality and OH&S values instigated throughout the business. An update of management procedures brought in monthly financials, realistic cash forecasting, budget controls – monthly reviews. The business was refinanced with number of participating funders.

Result:
The business attained sales of $8M
With a profit of $800K within twelve months and was able to be refinanced to allow for future growth.
Acquisitions in Queensland and other surrounding areas were then made possible to make the business one of the leaders in its field.

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