TMA Turnaround Awards Winners 2008

Winner of the "Small Turnaround Award" given for micro turnarounds

Awarded to Michael Fingland and Vantage Performance

In photo (from left to right): Ian Johnson (2008 president of TMA), Greg Woszczalski (CEO of 180 Corporate, major event sponsor) and Michael Fingland (MD of Vantage Performance).

Michael Fingland and Vantage Performance were appointed to advise Project Drott, a Qld based earth moving & civil construction business, in developing and implement a strategic turnaround plan.

Following an unsuccessful foray into fixed price contract construction, Drott suffered operating losses resulting in loss of confidence of its banker and a working capital crisis.

Key milestones achieved:

• Restoration of the business banking relationship
• A 97% increase in revenue within 12 months
• Net Profit margin of 6% versus a loss of 7% in the previous financial year

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Winner of the "Medium Turnaround of the Year" given for turnarounds involving businesses with revenue of less than $50m.

Awarded to Adrian Loader of Quay Capital

Quay Capital were appointed to evaluate the financial position and capital raising options of Bounty Industries Limited.

Bounty is a listed underground coal contract miner and equipment leasing company.  Its financial position had deteriorated due to the loss of a profitable contract and poor mining conditions encountered in its other contract resulting in the forecast operating losses of circa $5m and a cash deficit.

Quay Capital engineered a comprehensive turnaround:

• improving governance through board changes, 
• a cost reduction program saving operating expenses of $7m (30% of sales), and
• renegotiating key contracts allowing Bounty to raise $4m new equity and a $6m underwritten listed convertible note to provide working and expansion capital.
• Bounty returned to cash positive operations within 6 months.

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Winner of the "Large Turnaround of the Year" given for turnarounds involving businesses with a turnover in excess of $50m.

Awarded to David McEvoy and PricewaterhouseCoopers

In photo (from left to right): David McEvoy (Partner at PricewaterhouseCoopers), Ian Johnson (2008 president of TMA) and Greg Woszczalski (CEO of 180 Corporate, major event sponsor).

Epworth is a major Victorian healthcare group operating 4 acute care hospitals in Melbourne. The company breached loan covenants following the late delivery and cost over runs at a new hospital and simultaneously suffered changing relationships with health insurance groups.

Its bankers, NAB led by TMA Victorian State Committee Chairman Rick Drury, brought in PwC as its adviser's, who established a multidisciplinary team to develop a sustainable turnaround. A new CEO was appointed in January 2007 to oversee the development and execution of this strategy. Over 18 months, Epworth achieved a dramatic turnaround with annual revenue increasing dramatically and a $40m turnaround in net profitability.  

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Winner of the "Outstanding Individual Contribution Award"

Awarded to Nick Samios

In photo (from left to right): Nick Samios (NSW State Manager, Cash Resources) and Ian Johnson (2008 president of TMA).

This award honours the dedication of those who give back to their profession and the TMAA. The inaugural award  recognises the contribution of a founder of the TMA who has raised the awareness and stature of the corporate renewal industry in Australia. Nick Samios: 

• was a founding shareholder
• President and Chairman of the TMA
• providing the Board meeting room for the TMA for many years
• In addition he has worked tirelessly in championing turnaround, lecturing and writing on the subject, and more recently chairing the TMA Education Committee and driving the development of the CTP program with the University of Technology Sydney