Business advisory for linehaul trucking & logistics business

Problem

The loss of two significant Contracts and the ongoing capital commitments on the linehaul fleet, determined that the linehaul trucking operator sustained significant losses.

The preoccupation of growing the turnover rather than considering the profitability of the relevant divisional business operations added to the monthly capital commitments.

Solution

Bryant & Bryant conducted an in depth review of the business operations as part of their Business Advisory consultation, the divisions relating to linehaul trucking and logistics, and concentrated on the inexperience in the logistics division and the inability to capture the revenue in the logistics causing sustained losses.  The logistics division was divested.

The review of the age of the fleet and necessarily the balance between sustained repairs and maintenance to an older linehaul fleet compared to the capital commitments to a newer linehaul fleet was undertaken.

A redistribution of the newer linehaul assets to the remaining Contracts, the realisation of the older linehaul assets was undertaken with the assistance of Bryant & Bryant.

Moratoriums in respect of the capital commitments with the financiers were also negotiated.

Outcome

The restructure of the existing operations, the concentration on quality Contracts rather than the quantity of Contracts allowed the business operators to focus, reduce the numbers of hours worked,  and sustain quality of life, rather than the ongoing drain on the human resources as per previous structure.

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