Heavy Machinery Transport and Logistics

Even highly established businesses can come under extreme pressure when market downturns collide with low-margin growth strategies and operational execution risk.

This case study explores how a long-standing Asia Pacific group with annual revenues of approximately $107M faced a severe financial and operational crisis after a downturn in its Australian markets.

In an effort to avoid downsizing and maintain market position, management pursued three major projects at exceptionally tight margins. Delivering these contracts required the rapid onboarding of a number of inexperienced supervisors and tradespeople, significantly increasing execution risk across the business.

The projects were ultimately mismanaged, resulting in contract losses of approximately $20M and driving the group to a net loss of $10M.

As pressure intensified, the business breached its $32M banking facilities and faced an immediate working capital shortfall of approximately $7M, placing significant strain on the company, financiers, employees, and shareholders.

Vantage Performance was engaged to conduct a strategic review of the group, assess restructuring options, and implement an immediate business stabilisation plan.

Key initiatives included:

• Development and execution of a comprehensive stabilisation and turnaround strategy

• Creation of a 64-point working capital improvement program totalling approximately $54M

• Forecasting and management of cost-to-complete exposures on loss-making contracts

• Strategic exit and sale process for the underperforming Australian construction contracts

• Sale of a non-core overseas business division

• Disposal of surplus property, plant, and equipment assets to reduce debt and improve liquidity

• Negotiation of standstill agreements with major financiers

• Securing a 4-month equipment finance repayment holiday

• Support to management in negotiating ATO, payroll tax, and creditor repayment arrangements

A critical component of the engagement was restoring financial control, stabilising stakeholder relationships, and creating a realistic path forward while managing substantial operational and funding pressure.

The Outcome:

• Successful stabilisation and restructuring of the group

• Return to profitability with a profit of $8M

• An $18M earnings turnaround achieved within 15 months

• Preservation of approximately $30M in shareholder equity

• Retention of around 250 jobs across the business

The turnaround wasn’t driven by cost-cutting alone, it came from decisive strategic action, disciplined financial management, and restructuring the business around sustainable operational performance.

This is where Vantage Performance operates: helping businesses navigate complex restructuring, turnaround, and high-pressure strategic events with clarity, execution, and stakeholder alignment.

Learn more: vantageperformance.com.au

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