Can you simply grow out of trouble?

I know a company, whose CEO said to me that with good top line growth and cost control his company will have a better future. That’s the way to go. The company has grown more that 30% over last year, but is still without profits. It has competition both at at high end and at low end. Its entire operating cash flow goes towards repayment and interest payments on loans. It has idle assets and surplus people. Its debtors and creditor days (age) are increasing. The company has good growth prospects but needs to rollout better products. Can such a company just grow out of trouble? Hemant


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