Fantastic sustained growth

Chris joined a manufacturing business in 1997 when it employed 20 people and had a turnover of $2M.  The business had strong sales and technical leadership which lead it on a bumpy growth path.  With financial systems in place, placated bankers and strong cash flow management the business grew at an average rate of 35% per annum for over 5 years in succession.  There was almost no private capital investment.  All funding was from banks and financiers, or generated from profit.

In 2003 a greenfield factory was started in Melbourne to manufacture automotive components, and in 2007 another larger component manufacturer in Adelaide was acquired, as well as a toolroom in Detroit. Then it started laying foundations for a facility in India. By this stage there were 340 employees and turnover exceeded $60M per annum.

The key was solid forecasting and understanding the risks before they arrived.

Rising from the ashes

An automotive component supplier suffered from the 2009 GFC collapse of the US automotive industry, with its knock on effect in Australia.  The company was placed in Administration as it had lost its related company funding. Chris put a financial plan to the Administrator and succeeded in getting a Deed of Company Arrangement in place.  The business met the requirements of the Deed, and 18 months later the Administration was terminated.  It is now a successful expanding business in the post-automotive world.

Saved by the bell

Another small manufacturer had become a financially lost soul, unable to meet its overwhelming debt and unable to understand its financial performance.  Chris came in and stabilised the trade creditors and banks, changed the bank borrowing structure, implemented meaningful monthly financial reporting, took the knife to wasteful and inefficient spending, and forced down inventory levels. The benefits became noticeable within 9 months, and within 2 years the creditor crisis was gone.  The business now trades without debt issues.

Industry Shake Up

Chris helped a company enter the Australian domestic mobile garbage bin market.  The only way to break in was by price reductions.  Quality and delivery were a given.  Chris analysed the cost structure involved in producing the bins.   The truly variable costs were calculated and the things that could not be easily changed were ignored.  The bottom line was; at what price could the product be sold and still return a decent profit to the company?  That was determined and industry prices were reduced by around 30%. Now the company manufactures bins 24/7/365 with healthy returns.