Retinue never made a gross profit. Not once. The reports are in.

Retinue’s Losses Highlight the Real Cost of Poor Profitability

Overview of the numbers and what they mean

A follow-up to a prior interview with Elvis Sehovic, Retinue’s former Head of Tax & Accounting, the latest figures from administrators and liquidators paint a stark picture: the business generated no gross profit in any period, and the financials deteriorated further over time.

Key findings reported

• No gross profit across any period.
• FY24 revenue: 4.25 million; Cost of sales: 10.86 million.
• Sales salaries and commissions: 7.54 million, representing more than the company billed.
• Approximately 7.36 dollars spent for every 1 dollar billed.
• Offshore staffing: about 120 employees via TOA Global, now the largest unsecured creditor.
• Total loss: about 38.9 million over 22 months, roughly 56,800 dollars per day.
• The firm was sold to a separate entity two days before administration for a nominal upfront amount of 1.00 dollar.
• Recovery for staff: about 15 cents in the dollar; clients seeking refunds reportedly scarce.

What the numbers imply

• The administrators found no evidence of insolvent trading and no breach of duties. The owner funded each dollar of the operation.
• The core issue was consistent negative margins on the firm’s work, rather than illegal activity. The strategy appeared to rely on continued service expansion and sales activity despite mounting losses.
• The business model did not produce sustainable profitability, and the focus shifted toward selling more of the same work rather than addressing underlying cost structures.

Context and follow-up resources

• In-depth analysis with illustrative charts and data: unaudited.com.au/cost-of-sales
• For those seeking the insider perspective, the original interview with Elvis Sehovic is available here: ryantan.buzzsprout.com/1350922/episodes/18223617-the-rise-and-fall-of-retinue-an-insiders-story-with-elvis-sehovic

Editorial note

This post serves as a summary of the publicly available figures and does not imply any legal conclusions beyond what the liquidators reported. The situation underscores the importance of sustainable profitability, disciplined cost management, and transparent governance in services firms.

If you’d like, I can adapt this into a longer feature piece with additional analysis, visualized charts, and implications for similar firms in your region.