01 · The question
Revenue grew for two years running. Why didn't gross margin move?
01
Case study · PRV-016
Contract-level profitability exposed 14 loss-making accounts; repricing and exits followed.
Client
Facilities services provider
$95M revenue · 2,400 staff
Industry
Business services
Service
Length
7 months
Year
2025
Statement of result · Gross margin
Sample data
Before
31.5%
+4.7 pts
After
36.2%
Change
+4.7 pts
Relative
+14.9%
Timeline
7 months
Source
Management accounts, H1 2024 vs H1 2025.
01 · The question
Revenue grew for two years running. Why didn't gross margin move?
02 · What we found
03 · What we did
We costed every contract, repriced or exited the fourteen loss-makers at renewal, and introduced a cost-to-serve price floor for new bids.
Deliverable · Contract profitability map
Sample · PRV-016
Contract profitability map
Measure
Note
Facilities services provider
Strategy & Growth ·
2025
04 · What happened
Gross margin widened from 31.5% to 36.2% in seven months, comparing H1 2024 with H1 2025 management accounts.
Before
31.5%
+4.7 pts
After
36.2%
Before
31.5%
After
36.2%
Timeline
7 months
Source
Management accounts, H1 2024 vs H1 2025.
Illustrative sample data. Provan, its people, clients, figures and sources are fictional and shown for demonstration only.