Industrial Product Manufacturer

Rapid growth without sufficient financial and operational infrastructure can quickly become unsustainable when external market conditions shift.

This case study explores how a mining services business faced a severe liquidity and stakeholder crisis after extensive rainfall disrupted operations, significantly impacting revenue and cash flow.

The business had expanded rapidly and carried approximately $12M in bank debt spread across five financiers. When trading conditions deteriorated, the company recorded a loss of approximately $3M and faced an immediate working capital shortfall of $3.5M.

As pressure intensified:

• The major financier was unwilling to provide additional funding and was considering receivership

• The business faced the likelihood of a significant banking provision

• Creditor distress escalated after repayment commitments previously made by management became unachievable

• Staff turnover accelerated amid concerns surrounding the future of the business

Vantage Performance was engaged to conduct a strategic review of the group, develop a turnaround plan, and stabilise operations during a period of significant financial and operational pressure.

Key initiatives included:

• Development and implementation of a comprehensive turnaround strategy

• Deployment of a robust cash flow and working capital management framework

• Negotiation of repayment arrangements with the ATO and major creditors

• Aggressive stakeholder management to restore confidence among banks, creditors, employees, and suppliers

• Implementation of a temporary stand-down of approximately 80% of staff during the flooding period to preserve liquidity

• Development of an employee retention strategy to support post-restructure recovery

• Creation of a revenue growth strategy targeting a fourfold increase within 18 months to capitalise on improving industry conditions and attract private equity interest

• Negotiation of standstill agreements with multiple financiers

• Recruitment and placement support for key executive roles, including a COO, CFO, and Senior Sales Manager

• Negotiation with the lead financier to enable the injection of $2M in Managing Director personal assets for working capital support

• Project management of an equity raise and vendor due diligence process

A major priority throughout the engagement was stabilising stakeholder relationships while repositioning the business to take advantage of future industry growth opportunities.

The outcome:

• Successful $30M capital raise for a majority equity stake

• Full repayment of all bank debt totalling approximately $12M

• Securing of $96M in new contracts

• Revenue growth trajectory representing an approximate 540% increase

• Stabilisation of the business and restoration of stakeholder confidence

The result wasn’t simply survival, it was the successful repositioning of the company from financial distress into a scalable platform capable of attracting institutional capital and substantial future growth.

This is where Vantage Performance operates: helping businesses navigate complex turnaround, refinancing, and growth transition environments through disciplined execution and strategic leadership.

Learn more: vantageperformance.com.au

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