Case Study: Overcoming Financial Challenges in the Concreting Industry with Small Business Restructuring (SBR)

Client Overview

We partnered with a well-established concreting company that had been successfully operating for over 17 years. Unfortunately, recent unseasonal ‘La Niña’ rains significantly disrupted concrete pours, creating substantial operational challenges. To compound matters, persistent inflation throughout 2022 led to dramatic increases in the costs of steel, concrete, and labour, rendering many previously accepted quotes obsolete.

As a result, the business faced mounting financial pressures, accumulating a tax debt of over $600,000 and a payroll tax debt exceeding $70,000. With the threat of entering Voluntary Administration looming, the company risked losing its license and the ability to continue trading.

Key Findings and Outcomes​

Through our comprehensive approach, the Client’s Small Business Restructuring (SBR) plan was accepted, leading to several positive outcomes:

• The company successfully avoided Voluntary Administration, allowing it to maintain operations and stability
• The Director was able to effectively defend against the Director Penalty Notice (DPN) issued by the ATO
• All 50 employees retained their jobs, preserving livelihoods and ensuring continuity within the workforce
• The company maintained its QBCC license, positioning itself for future growth and continued trading
• By restructuring, the company was able to “start fresh,” addressing $794,000 worth of liabilities for a total of just $177,500, significantly alleviating financial stress
• Local suppliers and subcontractors recognised the company’s value and chose to retain their partnership, ensuring ongoing business relationships
• The ATO is likely to continue receiving income tax revenue from this revitalised business, contributing positively to the local economy

Navigate Financial Crisis with Our SBR Specialists

Don’t face financial difficulties alone. Our Restructuring and Recovery team specialises in creating tailored SBR plans that address your unique challenges. With extensive experience and a proven track record, we are committed to guiding you through financial crises and helping you achieve long-term stability. Get in touch with our team to explore your options today.