The Backstory
When this client first came to ABL Corp, they had been funded by another financier who no longer wished to support them due to ongoing trading losses, the progress claim nature of their invoicing, and a growing ATO liability. The business had reported losses peaking at $2 million in the prior financial year.
The Problem
Upon engagement, our CFO undertook a detailed review of the company’s operations and financials. One of the first discoveries was that the client had no clear understanding of their true cost of production, particularly in relation to labour costs, which were being significantly underestimated.
The Solution
During this review, our CFO identified an imminent tender valued at $660,000. After recalculating the actual cost of delivery, she found the true cost would be $800,000. Based on this insight, she worked closely with the director to revise the tender to $900,000, ensuring a viable margin. Our client submitted the revised tender and successfully won the contract.
With accurate financial data and active CFO guidance, our client then transformed the way they approached every new project. While other funders stepped away, ABL Corp had the confidence to provide continued working capital support, backed by our close understanding of the business and its turnaround plan.
In addition, our CFO identified further cost-saving opportunities, such as reducing equipment hire expenses. We prepared a financial pack demonstrating the benefit of asset ownership and referred the opportunity back to the client’s finance broker, who is in the process of arranging equipment finance for key plant and machinery purchases.
The Result
Within just seven months of working with ABL Corp (September 2025), the client achieved break-even results for the first time in three years. Older, low-margin contracts are now running off, and the business is positioned to generate sustainable monthly profits moving forward.
- Losses of $2M reversed to breakeven within 7 months.
- Accurate job costing and improved pricing discipline.
- Reliable monthly financial reporting and visibility.
- Sustainable profitability trajectory established.
