The Challenge: Profitability Decline Amid a Labour Shortage

A recruitment and labour hire company approached us during a challenging period—New Zealand was experiencing a severe shortage of skilled workers. For a business reliant on placing workers, this created a major issue.

This was a particularly tough period for this industry, and as a result margins were falling away, and profitability had reduced significantly. Our client needed strategic guidance to regain control and improve their bottom line.

Our Approach: Back to Business Fundamentals

To help the client regain control, we worked closely with them to identify and strengthen the core areas of their business and create a clear, results-driven strategy. We helped the client focus on the key areas that make the business successful:

• Diagnose: Firstly, we spent time working with the client to diagnose the problems within the business, ensuring we weren’t just applying a band-aid to the obvious wound without addressing the underlying cause.

• Sales-Driven Strategy: Together, we refocused efforts on revenue-generating activities to ensure every opportunity was maximised, constantly refining based on real-time feedback.

• Margin Growth & Pricing Strategy: We introduced proper reporting and analysis to identify areas where value-added services could increase pricing. 

• Market Positioning: We helped the client understand where they stood in the market, refining their pricing and positioning to attract the right work.

• Financial Clarity & Decision Making:  Through better financial oversight, the client gained a clearer understanding of cash flow, enabling smarter decision-making and long-term stability. 

The Results: A Profitable Transformation

• ✅ Profitability Increase: 78% (before accounting for our fees) 

• ✅ Revenue Growth: From $3,870,000 to $5,780,000 

• ✅ Profit Growth: From $271,000 to $484,000 in 12 months

• ✅ Cash Flow Stability: The business became financially steady, reducing uncertainty. 

• ✅ Future Expansion:  Through continued work with Kendons, the client—now in control of their business—is exploring substantial growth opportunities and working toward creating a long-term asset for the next generation.

Scale, Refine and Grow Your Business with Kendons

This transformation didn’t happen by chance—it was the result of a proactive client keen to turn things around and effective business coaching with our director, Liam O'Shea, over a 12-month period (and on-going). 

If you're looking to improve profitability, strengthen your financial position, and gain long-term stability, let’s talk.

Problem:  Liam's client owns a wholesaling business that had been growing year-on-year with increasing profits. But, COVID caused a significant strain on the business' supply chain. Stock was slow to arrive, so the company had to carry triple the levels it had before COVID. At the same time, profitability and sales declined, and margins decreased. This resulted in significant cash flow strains on the client and their business, as well as stress and sleepless nights. 

What we did: The client wanted to get their head around the business and sort out a plan for the coming year. Together, Liam and the client created a 12-24 month road map that identified specific goals, issues and roadblocks and how to overcome these. They worked together to obtain appropriate financing and to set up systems to help the business succeed. This work included setting up regular reviews of the business margin and product profitability, creating a sales system and holding the client accountable to the plan. They are now working on reducing the business's reliance on the owner. Liam works closely with the client, discussing key issues occurring in real-time and developing solutions together. 

 Results: The clients' profitability is on track to more than double last year's profit, the gross margin has increased from 18% to 22%, and the business cash flow has settled. Through working with Liam, the client is regaining control of their business and is now looking at substantial growth opportunities. This involves investments that the company could not have made in the financial position it was in 12 months ago.