Gale Pacific has all the hallmarks of a turnaround story – an experienced new management team, improved financial position, successful restructuring initiatives and signs of a recovery in end markets. The company achieved strong profit growth early in the new millennium, as earnings per share rose from about 7.2¢ in 2000-01 to 12.5¢ in 2003-04.

As Gale attempted to increase capacity and expand into new markets between 2005 and 2008, inefficiencies in terms of the company’s manufacturing and distribution operations combined with deteriorating conditions in global markets led to a sharp drop in earnings, and the company recorded significant losses in 2005-06 and 2006-07.