A well-established hydraulic cylinder manufacturing business located in regional NSW, and with loyal clients in the agricultural and industrial sectors, was accustomed to having high annual turnovers. But dwindling sales and poor cash-flow management had eroded profitability and forced the company into voluntary administration.

Solving the problem

The administrators appointed Carix to work with management and staff to help sustain the local manufacturing enterprise. Carix advisors provided objectivity and experience; applying lessons learned from similar situations.

The solution involved:

• Creating an up-to-date website and consolidated branding
• Contacting suppliers and customers to restore confidence in the business
• Restructuring the business and managing the change associated with restructure
• Liaising and negotiating with administrators
• Supporting the business in dealings with lending organisations

Result

Carix helped the business implement cost reductions and productivity improvements, and to demonstrate its ongoing viability as a local manufacturer. The cylinder manufacturer was sold to a complementary business and the owner was relieved of his debts. Under the new ownership, the team continues to manufacture high-quality reliable Australian-made hydraulic cylinders.