Vantage Performance acted as the Chief Restructuring Officer (CRO) for this project.
In a turnaround,
communication is key.
Australia’s mining industry is a powerful force. In good times, its contractors and suppliers share in its success. But when times get tough, they’re amongst the first to feel the impacts.
In 2014, a successful telecommunications supplier to the mining sector became victim to a general downturn in the industry. Turnover dropped from $15 million to $10 million and margins were squeezed. The company’s accounts reported a yearly loss of $500,000 and highlighted a working capital requirement of circa $1 million.
The news of the downturn in business quickly spread uncertainty through the company’s employees, suppliers and financiers significantly elevating stress levels of the executive team.
How we turned things around.
Vantage Performance was called in to assist. Our first course of action was to implement a business stabilisation plan and to secure $300,000 in short-term finance to allow us time to assess strategic options for the group.
Support from the company’s creditors and major financier was secured with a stakeholder management strategy which bought us valuable time.
A 100 day work plan, a strategic options review and successful negotiations with the ATO also helped pave the way to recovery.
Vantage also project managed a full refinance of the group providing additional working capital to complete the restructure, pay outstanding debts and position it for growth. At every stage, all stakeholders were carefully managed and remained positive and supportive.
Once the business had stabilised and returned to profit, it was decided that the best course of action was to sell the company. The business was successfully sold to Telstra and is well-positioned for substantial growth.