P&L Review & GP Improvement Plan

Group view · Pest2Kill Pty Ltd + Impact Pest Control · 10 months to 30 April 2026
Generated
02-06-2026
Prepared for the Ops Manager
Quick refresher. Gross Profit = Trading Income − Cost of Sales. Operating Expenses (rent, marketing, office wages, etc.) sit below GP — they hurt Net Profit but not Gross Profit. To lift GP you have two levers: grow revenue without growing COGS in lock-step, or shrink any line inside Cost of Sales. Everything below focuses on those two levers.
Group Trading Income
$3.78M
10 months · $4.53M annualised
Group Gross Profit
$2.13M
56.3% blended GP%
Group Net Profit
$660K
17.5% NP%
GP gap between entities
23.6 pts
Impact 77.2% · Pest2Kill 53.6%
Pest2Kill Pty Ltd
10 months to 30 April 2026
Trading Income$3,328,391100.0%
Cost of Sales$1,545,83946.4%
Gross Profit$1,782,55253.6%
Operating Expenses$1,375,41741.3%
Net Profit$408,53812.3%
Impact Pest Control
10 months to 30 April 2026
Trading Income$446,725100.0%
Cost of Sales$101,81822.8%
Gross Profit$344,90777.2%
Operating Expenses$93,12020.8%
Net Profit$251,78856.4%
Headline finding
Pest2Kill runs at 53.6% GP; Impact runs at 77.2% GP — a 23.6-point gap. Some is structural (Impact is smaller, fewer vehicles, simpler model). But the gap is too large to ignore. Tech labour is the main reason: at Pest2Kill, tech wages + super + payroll tax + contractors total 34.6% of revenue. At Impact the same lines total 17.0%. That is your number-one place to look.
Where Pest2Kill's Cost of Sales dollars go
Line 10mo $ % of revenue Notes
Wages (Technicians)$925,82027.82%Largest single line by far
Pest Control Supplies$144,3084.34%Industry benchmark 3.0–4.0%
Superannuation (Tech)$133,0134.00%Fixed % of wages
Fuel$84,2042.53%15+ active vehicles
Contractors (Tech)$70,3692.11%Usually more $ per hour than in-house
Tolls$50,9831.53%60% of fuel spend — heavy CBD/freeway use
Workers Comp Insurance$24,9430.75%Renews annually
Payroll Tax (Tech)$23,3270.70%Statutory — non-negotiable
Motor Vehicle Insurance$22,8000.69%Renews annually
MV Rego / R&M / Other$48,7521.46%Vehicle running costs
Top 10 lines$1,528,519~45.9%

The top 6 lines alone = 43% of revenue. Move any of these even 0.5 of a percentage point and you change real money.

8 Areas to Look At — Ordered by Likely Impact

1
Technician productivity
High impact

Why: Tech wages are 27.82% of revenue. You pay technicians for the day regardless of how many jobs they complete. Every extra job they fit in costs only supplies and a bit of drive time — almost everything else flows through to GP.

What to do / watch: Track revenue per technician per day, jobs per technician per day, and the % of paid time that's onsite (vs travel + admin). Anything you do that lifts these numbers lifts GP directly.

Wages = 27.82% of revenue 1% productivity gain ≈ $9K/year GP 5% gain ≈ $46K/year GP
2
Route efficiency — fuel, tolls, drive time
High impact

Why: Fuel ($84K) + Tolls ($51K) = $135K, or 4.1% of revenue. Tolls at 60% of fuel spend tells you there's a lot of M5/M2/Cross-City driving. Every hour saved on the road is also an hour available to invoice work — double benefit.

What to do: Tighter postcode boundaries per tech, EOD-from-home (avoids the morning toll run back to base), avoid peak-priced toll windows where possible, cluster jobs geographically on the schedule. The route-efficiency reports already on the hub are the right tool — use them to assign work, not just review it.

Fuel + Tolls = $135K/yr 10% reduction ≈ $14K/year GP Plus productivity flow-on
3
Pricing review — especially recurring commercial
High impact

Why: A price increase has no matching cost increase, so it lands almost entirely in GP. It's the single most efficient GP lever — but also the easiest to leave on the table because nobody notices it isn't being pulled.

What to do: Audit when each commercial recurring contract was last re-papered. Anything 12+ months old is probably due. For residential, check that your published job pricing actually gets charged on quotes — discounting often creeps in informally. Even a small (3–5%) blended rise on 70% of jobs adds material GP.

5% rise ≈ $166K/year GP (if churn flat) 3% rise ≈ $100K/year GP
4
Pest control supplies cost ratio
Medium impact

Why: You're at 4.34% of revenue; industry benchmark is 3.0–4.0%. A 0.5-point reduction = roughly $16K/year and doesn't require any change to operations or pricing.

What to do: Consolidate to 1–2 primary suppliers for bulk discounts. Tender supply contracts annually. Audit chemical application rates against label minimums (over-application is invisible waste). Check stock per truck quarterly — expired or excess chemical sitting in vehicles is bought-and-paid-for inventory shrinkage.

Supplies = 4.34% of revenue 0.5pt reduction ≈ $16K/year GP Benchmark 3.0–4.0%
5
Contractor vs in-house tech mix
Medium impact

Why: Contractors typically cost 1.3–1.6× the fully-loaded hourly rate of an in-house tech once you've paid super, workers comp, payroll tax, uniform, etc. If contractors are absorbing regular work (not just overflow), insourcing the equivalent FTE is cheaper.

What to do: Take the $70K contractor spend, divide by contractor hours billed, compare against your fully-loaded in-house tech cost per hour (wage + 9.5% super + WC + payroll tax + uniform/PPE allocation). If the contractor rate is >~1.4× the in-house rate and the work is steady, hire instead. Keep contractors for peaks only.

Contractors = $70K/yr Insourcing 0.5 FTE if rates favour it
6
Service mix — grow the higher-margin lines
Medium impact

Why: Commercial is 50% of revenue but heavy on labour. Strata (4.26%), Termite (6.47%) and Property Management (4.04%) are usually higher-margin because they're recurring contracts with predictable scheduling and density. Growing them lifts your blended GP% without any cost-line change.

What to do: Ask your accountant or bookkeeper to extend the P&L to show GP% by service line, not just revenue. Then steer the sales team's pipeline toward whichever lines have the best GP%, not whichever lines have the biggest top-line ticket.

Strata = 4.26% of revenue today Termite = 6.47% Recurring lines compound over years
7
Fleet sizing — cull idle vehicles
Medium impact

Why: Last month's BP report showed 15 idle fuel cards still incurring monthly fees. Combined with $107K Motor Vehicle Finance (in OpEx) and ~$80K in vehicle insurance / rego / R&M (in COGS), the fleet is a major drag. Every truck that isn't earning is still costing rego, insurance, finance and depreciation.

What to do: Match the active fleet size to active technician headcount. Sell or off-hire vehicles that aren't allocated to a working tech. Cancel idle fuel cards (the $2.95/month fee adds up across 15 cards). One vehicle gone = ~$5–8K/year of cost back.

15 idle BP cards as at May ~$200K total vehicle costs/yr 1 vehicle off = ~$5–8K/yr
8
Insurance re-tender at renewal
Lower impact

Why: Workers Comp ($24.9K) + Motor Vehicle Insurance ($22.8K) = $47.7K in COGS, with Public Liability and Other Insurance another $10K+ in OpEx. Brokers don't volunteer reductions — you have to ask. With your claims history and updated fleet data, a competitive re-tender often saves 5–15%.

What to do: 60 days before each renewal, ask the broker for a written market review showing alternatives. If they won't, get a second broker quote and benchmark.

WC + MV Ins = $48K/yr 10% saving ≈ $4.8K/year GP
What “good” could look like — sensitivity table

Modelled against the 10-month Pest2Kill numbers, then annualised. Realistic path is small wins across the top 3–4 levers, not one heroic change.

Scenario GP% change GP $ change (annualised)
3% blended price rise (no churn)+1.6 pts+$100K
5% blended price rise (no churn)+2.7 pts+$166K
10% reduction in fuel + tolls+0.4 pts+$14K
0.5pt reduction in supplies ratio+0.5 pts+$16K
5% lift in tech productivity (more jobs same wage)+1.4 pts+$46K
2 idle vehicles off-hired+0.3 pts+$10K
Combined — partial wins on all of the above+~4.4 pts~$147K–$250K

Taking Pest2Kill from 53.6% GP to 58% GP (still well short of Impact's 77%) = roughly $147K/year extra GP at current revenue.