PERTH BUSINESS DEVELOPMENT CASE STUDY
With Steve Nappy, Director –Hydramech
About Hydramech
Hydramech specialises in mobile mining machinery components including hydraulic cylinder services for underground mining equipment. Based in Kalgoorlie, Western Australia, Hydramech’s extensive range of precision machining equipment assist with cylinder precision machining and fabrication tasks such as cylinder: refurbish, repair, rebuild, exchange and sales.
Business Challenges
Hydramech has worked with Brentnalls WA since around 2015. At that time, Hydramech was a new business, was doing well and had good margins. The business wasn’t experiencing any substantial challenges to prompt the owners to seek an external advisor, but having worked with Brentnalls on another business, Director Steve Nappy knew there was always room for the business to do better, and that the business would benefit from an impartial external perspective, and from support with planning and forecasting.
“Before working with Brentnalls we weren’t planning at this level at all. We were looking at the P&L, we were looking at the numbers and we were having discussions about the future, but we weren’t forecasting. We were tax planning but not anywhere near as effectively as we do now. Although we thought we were pretty good at what we did, with Brentnalls WA’s support we’ve gone a lot further.” ~ Steve Nappy, Director
Working with Brentnalls WA
Brentnalls WA started running the Quarterly Business Review process with Hydramech, which involved in-depth quarterly meetings to review business performance and financial analysis, look at the business forecasts, capital expenditure and planning, identify opportunities and red flags in the business and align on key actions.
Steve says “The QBR process with Brentnalls has helped us get very good in capital planning and business planning. We have a good understanding of our numbers. We can plan and feel a lot more secure about how we plan. We know there’s an independent set of eyes watching the business so if there’s an issue we’re onto it and can react.”
“Brentnalls have been great to work with, they’re a very good tool in our war chest. I know I’ve got allies there, people who have a very impartial view, who can help guide me through crucial decisions. They act as a shareholder; they act as an independent CFO.
Results
Hydramech has gone from strength to strength and continues to grow. In the past three years, the business has seen turnover increase by 40% and their margins have steadily increased.
“Brentnalls have certainly given us a lot of advantage. They have helped us with our capital planning, helped us understand our numbers and continue to push and grow the business.
We’ve had a really positive experience. Their support helps us plan, provides business clarity and we’re kicking goals.”
