01

Case study · PRV-016

Gross margin up 4.7 points after a pricing and portfolio reset

Contract-level profitability exposed 14 loss-making accounts; repricing and exits followed.

Client

Facilities services provider

$95M revenue · 2,400 staff

Industry

Business services

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

Before31.5%
After36.2%

Source

Management accounts, H1 2024 vs H1 2025.

Facilities technicians working from a ladder

Fig. · Client site — Facilities services provider

Sample image

Facilities technicians working from a ladder

Fig. · Client site — Facilities services provider

Sample image

01 · The question

Revenue grew for two years running. Why didn't gross margin move?

02 · What we found

—

—

Fourteen contracts lost money once mobilisation and supervision were costed.

Fourteen contracts lost money once mobilisation and supervision were costed.

—

—

Prices were set as last year's price plus inflation, not by cost to serve.

Prices were set as last year's price plus inflation, not by cost to serve.

—

—

The most profitable contracts were the ones sales spent the least time on.

The most profitable contracts were the ones sales spent the least time on.

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

Result

Result

Note

Contracts repriced

Contracts repriced

9

9

At renewal

At renewal

Contracts exited

Contracts exited

5

5

Loss-making

Loss-making

Bids below price floor

Bids below price floor

0

0

Since the policy

Since the policy

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.

04

Next step

Facing something similar?

Talk to Helena.

Helena Marsh leads Strategy & Growth. A 30-minute call is enough to tell whether a result like this is within reach for you.

Your request

≤ 1 working day

A partner replies

We’ll respond within one working day.

04

Next step

Facing something similar?

Talk to Helena.

Helena Marsh leads Strategy & Growth. A 30-minute call is enough to tell whether a result like this is within reach for you.

Your request

≤ 1 working day

A partner replies

We’ll respond within one working day.

04

Next step

Facing something similar?

Talk to Helena.

Helena Marsh leads Strategy & Growth. A 30-minute call is enough to tell whether a result like this is within reach for you.

Your request

≤ 1 working day

A partner replies

We’ll respond within one working day.

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