Turning a Construction Business Around
August 15, 2025
Client Success Story – Turning a Construction Business Around
by Andrew Manners
Overview
A family‑owned building and construction company in south-east Queensland approached Sammut Bulow looking for more than annual compliance work. After more than a decade in business they had endured five consecutive years of losses, a growing ATO debt, and were non‑compliant with the QBCC Net Tangible Asset (NTA) requirements. With their previous accountant offering little beyond basic tax lodgements, the owners felt they were flying blind. Emotionally and financially invested, they weren’t ready to walk away - but they needed hands‑on support to avoid collapse.
The Challenge
The company had been treading water for years:
- No forward planning or management guidance from their previous accountant meant decisions were being made without up‑to‑date financial information.
- Persistent losses and rising ATO debt were putting pressure on cash flow.
- They were non‑compliant with QBCC NTA requirements, placing their licence at risk.
- The owners desperately wanted to keep the business running and retain core staff, but they were at a crossroads: enter administration or trade out.
How Sammut Bulow Helped
Our first step was to sit down with the owners and talk frankly about their options. Administration was an option, but the family felt strongly about preserving the business. We aligned with that goal and agreed to trade out, but only after conducting an operational review and mapping out a clear plan.
Right‑sizing the cost base
- Our review uncovered significant input‑cost blow‑outs, particularly around rising steel prices. We overhauled their quoting methodology, moving from undercutting competitors to sustainable, commercial rates.
- Difficult conversations were necessary. Over 20% of the workforce, including family members, were made redundant to stabilise cash flow.
- Those tough calls were balanced with a clear vision: by controlling costs and pricing correctly, the business could position itself to win larger‑scale, more profitable contracts.
Hands‑on advisory and cash‑flow support
- We restructured the payment arrangements with the ATO and key suppliers and rebuilt creditor relationships.
- To ease short‑term pressure, we assisted in applying for a temporary overdraft.
- Through monthly catch‑ups, we monitored progress, refined the budget, and kept the owners accountable to their turnaround plan.
- With the owners and managers now thinking strategically, we acted as an outsourced CFO, providing guidance on everything from quoting templates to NTA reporting for QBCC compliance.
The Results
Within 18 months, the business had achieved a complete turnaround:
- Cleared all overdue debts, including the ATO arrears.
- Returned from a $500 k annual loss to an annual profit of $200-300k. And within 5 years a profit of $400-600K
- Restored QBCC NTA compliance, removing the risk to their licence.
- Secured contracts with national commercial clients, positioning the business for sustainable growth.
- With profits and cash flow stabilised, the owners are now considering retirement, a sale, or intergenerational succession. They have also started planning a property acquisition as a long‑term investment.
Lessons for Other Businesses
This story demonstrates that with the right advice and decisive action, even a business in serious distress can recover. The owner’s willingness to make hard decisions, combined with Sammut Bulow’s strategic and hands‑on approach, delivered real outcomes:
- Visibility and insight: regular reporting, budgeting, and forward planning replaced guesswork.
- Resilience: restructuring operations meant they were better equipped to handle cost fluctuations and market changes.
- Confidence: with a trusted adviser by their side, the owners could focus on the future instead of firefighting.
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At Sammut Bulow, we believe in more than compliance - we partner with clients to build, grow and protect their businesses. Whether you’re facing a turnaround, planning growth, or preparing for succession, our advisory team can help you navigate the complexities and move forward with clarity.
Real advice. Real people. Real outcomes.
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