Client story
Transport & Logistics Company
Short answer
After losing two major customers, a transport and logistics business fell from $30 million to $17.5 million in revenue. A turnaround backed by trade and debtor finance saved every job, and the business now operates nationally.
Annual Turnover $30,000,000
The Problem
This transport & logistics firm had seen its fair share of ups and downs since its inception in 2011 with revenues of $30M. However, the loss of two of their major customers to offshore competitors saw the business’s revenue dropped to $17.5M in 2015. Unable to scale down the business fast enough, the business was under severe working capital deficiencies.
The Solution
The directors approached PFBS for assistance and with the collaborative support of their external accountants, we not only turned the business around but implemented appropriate working capital facilities. The combination of both a trade facility (to buy fuel) and debtor finance enables the business to refocus and develop more robust business and operational strategic policies/goals.
The Outcome
It did take the business a further 3years to completely turn around, but through the support of their new financier (whom both facilities above were secured with), they saved all employees jobs, they move factories to reduce costs, they obtain better and more profitable customers and are now in the next phase of using their working capital lines to invest in new comprehensive and cutting each technology to manage their NOW national business.