Concrete Manufacturing and Construction
Even businesses with strong client relationships can come under significant pressure when margin compression, project overruns, and weak financial controls begin to erode profitability.
This case study explores how a construction company with a blue-chip client base engaged Vantage Performance after experiencing escalating trading losses and increasing financial pressure across the business.
In the 18 months prior to engagement, the company recorded losses of approximately $1.45M while also carrying bank debt of around $750K and legacy tax liabilities.
Competitive pressure from larger, well-capitalised industry participants had driven margin compression, while several projects experienced significant cost overruns, one project alone contributing approximately $333K to the loss.
Despite these challenges, the underlying business remained operationally viable, with under utilised assets and a strong client portfolio providing a foundation for recovery.
Vantage Performance was engaged to assess the business, stabilise operations, and implement a structured turnaround plan focused on restoring profitability, improving financial visibility, and rebuilding stakeholder confidence.
Key initiatives included:
Development and implementation of a business stabilisation strategy
Refinancing of equipment facilities to improve liquidity and extend funding flexibility over a further three-year period
Support for strengthening financial management capability through the engagement of a full-time Financial Controller
Improvement of working capital through the recovery and collection of project retentions
Reduction of Commonwealth Bank of Australia exposure by more than $1M
Operational and project performance review to improve margin management and cost control
Stakeholder management to restore confidence among financiers and key business partners
A major focus throughout the engagement was improving financial discipline, restoring visibility into project performance, and repositioning the business around sustainable operational profitability.
The Outcome:
Successful stabilisation of the business
EBITDA improvement of approximately 109% (circa $850K) over 18 months
Restoration of banking and stakeholder relationships
Improved working capital and financial management capability
Return to profitability and continued operational improvement
The project wasn’t simply about reducing losses, it was about restoring financial control, improving operational accountability, and strengthening the business for long-term sustainable performance.
This is where Vantage Performance operates: helping businesses navigate operational pressure, financial restructuring, and performance improvement through disciplined execution and strategic leadership.
Learn more: vantageperformance.com.au
Subscribe for insights into Proactive Performance, Strategic Growth, Capital Solutions, Governance, Safe Harbour and performance-led business transformation.
