Vantage Performance acted as the Chief Restructuring Officer (CRO) for this project.
How we helped a failing sugar mill weather the storm.
A devastating cyclone and prolonged heavy rains hit the Proserpine sugar cane milling business in North Queensland right before harvest wiping out the crops in the region. The resulting loss of revenue couldn’t have come at a worse time for the 100 year old company which was already facing significant cost overruns on a large capital intensive project.
The business was asset rich, but cash poor; and the board was under extreme pressure as the mill was the town’s biggest employer and its closure would have a devastating impact on the community.
The inclement weather and increasing consolidation within the sugar industry had severely affected the business’s revenue and cash flow, and its normal healthy annual turnover of $110 million was dangerously down on previous years.
The immediate problems the business faced were a $25M working capital shortfall and a huge tax debt. So they called in Vantage Performance.
How we turned things around.
Our immediate response was to provide the board with strategic options and implement a 100 day working capital management and business stabilisation plan which was successful in improving cash flow by $5M.
The next step was to restore the confidence of its financiers, members, suppliers, farmers, the local community and particularly the customers of its deposit scheme because if they withdrew their deposits the working capital requirement would have increased to $45M.
The process was complex. We stabilised the deposit scheme to encourage the support of financiers and developed a turnaround plan to support a $20M debt raise. A carefully prepared submission successfully secured a $20M increase in debt facilities which together with the $5M working capital management plan covered the working capital requirement.
Now it was time to decide the future of the business with a solution that would offer the best return to its many stakeholders. After careful consideration the board decided to sell the business and it was eventually sold to Wilmar International, one of the worlds largest sugar producers. A very rewarding outcome as we were also able to save several hundred jobs.
“Michael and the team ran the project well and on time. The outcome was increased financial support from our bank which allowed us to implement a business sale without cash flow pressures.”
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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BioBio
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Michael is the founder and CEO of Vantage Performance.
Michael is passionate about helping businesses solve their biggest challenges and seeing the positive impact this has on people’s lives.
“In a time of financial stress, maintenance of the confidence of financiers in a client becomes more challenging even with a robust workout plan. Michael’s experience and strong reputation with financiers positions him well to bridge this confidence gap between financier and client. This, coupled with his advice in the preparation of a turnaround plan makes him a key player in any successful business turnaround.”
Oliver Martin, CFO, Smithbridge
“We engaged Michael and the Vantage team to provide a strategic review and implementation plan to assist us re-position our business after a challenging period. The team’s knowledge, commitment and professionalism were well regarded by us and this was instrumental in achieving our goals for the review and our business going forward. The credibility, discipline and momentum provided by the team was everything we hoped for and I am very happy to recommend their work.”
STEPHEN BARNARD, CEO, NATIONWIDE HIRE
“Michael ran the project well and on time. The outcome was increased financial support from our Bank to allow us to implement a business sale without cash flow pressures.”
JOHN POWER, GM, PROSERPINE SUGAR
“Michael and I have worked on a number of matters together for mutual clients. I have always found him to have a detailed understanding of the key drivers that impact on the ultimate outcome, and an unwavering focus on obtaining the best possible result for his clients.”
LUKE MOUNTFORD, PARTNER, HOPGOOD GANIM LAWYERS
“Whenever I identify that a client needs assistance to guide them through tough financial circumstances, I have no hesitation in recommending Michael. I have worked closely with Vantage on a number of turnaround and profit improvement assignments and they are the best in the business.”
SCOTT BUTLER, PARTNER, MCCULLOUGH ROBERTSON LAWYERS
“CBO Telecommunications sought the advice and services of Michael and the Vantage team last year when the mining industry made it very difficult through extended payment terms for SMB’s to participate in our day to day business. Michael not only brought a wealth of knowledge and industry peers to the table for us to navigate a path forward, he also managed the implementation of short and medium term strategies. We had a very successful outcome and continue to strive to be a thought leader in our market.”
Mark McGregor, Managing Director, CBO Telecommunications.
“Michael has made a fantastic contribution to the turnaround at SubZero Group. His support, drive and understanding of what it takes is greatly appreciated.”
Joe Clayton, CEO, MRS Plc
“Michael is a genuine turnaround expert. Michael will get to know your business very well and formulate a creative and practical plan to overcome the difficulties you face. Michael is also adept at adjusting and varying the strategy as things progress and change.”
Paul Betros, Partner, Hopgood Ganim
“Michael and the team at Vantage Performance have completed several assignments for me. They have always exceeded expectations with attention to detail and an intimate knowledge of the business and industry they have been asked to assess. If they don’t know an answer they find it and provide practical solutions to get the best possible result.”
Russell Morrison, Director, Westpac Bank
Michael Fingland has 20 years’ experience in business transformation, restructuring and turnaround.
Moving from a Chartered Accountancy background into corporate advisory he has worked in a wide range of industries from mining services, retail, agri, civil, transport, manufacturing, telecommunications, engineering to construction.
Michael has been awarded the “Australasian Turnaround Professional of the Year Award” by the Turnaround Management Association and a number of his client engagements resulted in Vantage Performance winning the “Turnaround of the Year Award” ten times.
Michael is a columnist for The CEO Magazine and regular contributor to other publications such as the AFR and BRW.
Qualifications
Chartered Accountant
Bachelor of Business, CQU
Awards
Australasian Turnaround Professional of the Year Award by the Turnaround Management Association (TMA).
Ten of his client engagements resulted in Vantage Performance winning the “Turnaround of the Year Award”.
Successful turnaround and restructure that led to a refinance of the Groups debt facilities totaling $17M, an increase in earnings of $5.2M and an improvement in enterprise value of $15M.
Strategic review and turnaround for a diversified agribusiness with annual turnover of $110M. Initiatives resulted in a 31% improvement in enterprise value increasing from $87M to $115M. The recommendations also resulted in a $30M improvement in working capital including a capital raise of $22M.
Strategic review and turnaround of a mining services company resulting in an increase in enterprise value of $39M. Key actions included revenue growth, stakeholder management, working capital management, internal systems controls, tender/contract governance, $30M capital raise and vendor due diligence.
