Mining Services Turnaround and Sale

Turnaround | Crisis stabilisationCapital raiseInterim management

Vantage Performance acted as the Interim Chief Executive Officer (CEO) and Chief Restructuring Officer (CRO) for this project.

A national mining services business experienced a 50% reduction in revenue in 2 months!

The mining industry downturn caused a 50% reduction in revenue from $36M to $18M in just 2 months causing significant stress on the business and its many stakeholders.

As a result, the business had breached its banking facilities, faced significant tax and creditor arrears and required an immediate cash injection of $5M.

Matters were made worse by the lack of data integrity in the financial reporting system.

How we turned things around.

Working with the company’s management we implemented a business stabilisation plan and seconded two of our executives to act as the company’s interim CFO and General Manager respectively. Their role was to restructure operations and improve financial reporting.

We negotiated a 6 month standstill agreement with their financiers along with a 4 month finance payment holiday, reduced the company’s headcount by 60%, secured $4M in creditor payment plans, negotiated favourably with the ATO and implemented a $2M de-stocking plan to boost cash flow. The shareholders also agreed to inject a further $400K.

We then project managed an equity raise process which resulted in the sale of the business to RMA Group, a $1bn multinational group operating in 73 countries. A very rewarding outcome for the team as we also saved some 75 jobs.

Success Stories

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Michael Fingland

My philosophy is that there is always a way to solve a crisis, as long as you’re engaged early enough.

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Andrew Birch

I believe that clear strategies and organisational alignment are fundamental for long-term business viability.