Managing Director s Review · Managing Director s Review ... Our management trainee programme again...
Transcript of Managing Director s Review · Managing Director s Review ... Our management trainee programme again...
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Managing Director’s Review
Weadoptedastrategytogrowthebusinessthrough
broadeningtherangeofservicesweofferedourexisting
customersacrossAustralia.Wealsobegantodiversify
ourserviceofferinginNewZealandandenteredthe
UnitedKingdompaintingmarket,whereourmaintenance
programmesareunique.Theresultwasastronger
business,withawidercustomerbaseandconsistent
year-on-yeargrowth.Operatingcashflowimproved
substantiallyandwehavebeenabletoincreaseour
dividendpayoutratioandfullyfrankdividends.
Todayweprovideabroadrangeofoutsourcedservices.
AustralianPainting,whichhasdoubleditsrevenueinthe
pasteightyearsandcontributedstronglytothelatest
result,provided33percentof2006-7grouprevenue.
Combiningourmulti-servicemodelwithgeographic
expansionhasthepowerfuleffectofcompoundinggrowth.
Ithasreducedbusinessrisksandprovidedaccesstoa
largermarket.Wecannowaddgreatervaluetolarger
businessesandgovernmentorganisationswith
multiplesites.
Systemstomanagemulti-sitecontractshelpedus
coordinateservicesduringthepastyearacrossmore
than60Myerstores,whereweprovidepainting,plumbing,
refurbishment,electricalandcomplianceservices.
Similarly,weprovidedmultipleservicesforothernational
groupssuchasacinemachain,Telstra,Orica,retail
chains,andspecialtystores.Wealsoprovidethe
AustralianElectoralCommissionwithmaintenanceand
complianceservices.
Ourcapacitytoassistmulti-siteorganisationswith
outsourcedservicesolutionshasincreasedsubstantially
sincetheendofthefinancialyearwiththeIntegrated
Groupmerger.ThisisthenextstepinProgrammed
MaintenanceServices’strategicevolutionandweare
excitedbythegrowthopportunitiesitprovides.Thegroup
nowhasafull-serviceofferingcoveringthespectrumfrom
labourhire,recruitmentandmanagedlabourservices,
throughtopropertymaintenanceandinfrastructure
services,givingusscopetocontributegreater
customervalue.
IampleasedtoreportthatProgrammedMaintenanceServicescontinueditsgrowthmomentumin2006-7andgeneratedanotherrecordresult,ledbyastrongperformancefromourAustralianPropertyMaintenancebusinesses.
Particularlysatisfyingwasthesignificantincreaseinrevenuefrommulti-service,multi-sitecontracts,validatingthestrategywehaveimplementedsinceASXlistinginOctober1999.Investorsthenwereconcernedaboutourabilitytoexpandthebusiness,thecompany’soperatingcashflow,lowdividendpayoutratioandlackoffranking.
Max FindlayManagingDirector
“ThemergerwithIntegratedGroupmorethandoublesthecompany’sannualisedrevenueandhasincreaseditsmarketcapitalisation.Itwillalsofurtherdiversifyourearnings,improvecashflow,tripleournumberofemployeestomorethan9,500andprovidealargergeographicfootprint.”
ProgrammedMaintenanceServices6
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ThemergerwithIntegratedGroupmorethandoubles
thecompany’sannualisedrevenueandhasincreased
itsmarketcapitalisation.Itwillalsofurtherdiversifyour
earnings,improvecashflow,tripleournumberof
employeestomorethan9,500andprovidealarger
geographicfootprint.
Combiningthetwobusinesses,however,promisesfar
morethanthat.Itoffersscopetobundlemoreservices
andofferthemtoabroadercustomerbase;expandlabour
hireservicesintoNewZealandandtheUnitedKingdom;
streamexistingProgrammedMaintenanceServices
expertiseintomorelocations,particularlyinWestern
Australia;andexpandbusinessinindustrieswhere
Integratedhasastrongpresence,suchasminingand
marine.Itwillalsocreategreaterlabourflexibilityacross
thegrouptomeettightregionallabourmarketconditions
andseasonaldemands.
Consistency of EBIT margins
2000
40
35
30
25
20
15
10
5
0
Cent
spe
rsha
re
20012002
20032004
20052006
2007
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
EBIT
/Rev
enue
%
EBIT EBIT/Revenue
7Managing Director’s Review
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Managing Director’s Review continued
Weareimplementingadetailedintegrationplan,which
willdeliversomecostsavingsandimprovedbusiness
efficiencieswherefunctionsareduplicated.Fromthe
outset,therehasbeentremendouscooperationand
goodwillfrombothPMSandIntegratedstaffandthetwo
groupsareworkingtogetherharmoniouslytocapitalise
onthespecialskillsthateachbusinesscontributes.
PeopleProgrammedMaintenanceServiceshasoutstanding
peoplethroughoutthebusinessandastrongteamspirit
basedonsixcorevaluesofSafety,Team,Responsibility,
Innovation,PrideandRecognition.
Inthecurrentfullemploymentconditions,thecompany
hascontinuedtoattractandretainhighqualitypeople,
including150apprenticesacrosstheGroup.Skills
shortages,however,havecontinuedtoholdusback
insomeareas,particularlyinWesternAustraliaand
NewZealand.
Tohelpovercometheshortageofskilledtradespeople,
wesecondedasmallteamofpaintersfromourUnited
KingdombusinesstoWesternAustraliaduringAustralia’s
peaksummerseason.Wealsoattendedcareersexpos
inWesternAustraliaandQueenslandtoincreaseschool
students’awarenessofourapprenticeshipopportunities.
Ourmanagementtraineeprogrammeagainenabled
frontlinestafftoprogresstokeyroles.Tohelpmaintain
highstandardsofcustomerservice,wedevelopedan
onlineinductionprogrammewhichwillbeimplemented
acrossthegroupin2007-8.Thisprovidesconsistency,
canbecustomisedforeachbusinessandoffersatesting
andannualre-testingcapability.Wealsocreatedan
eRecruitmenthubtocoordinateandstreamlineall
recruitmentprocesses,trackeffectivenessofadvertising,
controlcostsandprovideatalentwarehouse.Thiswas
successfullytrialledintheAustralianPaintingbusiness.
Afirmcommitmenttoemphasisingsafetythroughout
theorganisationsignificantlyreducedtherateofinjury
andillness.Ourapproachistodevelopacultureof
safety,ratherthanrelyonsupervisedsafety,andthe
lost-timeinjuryratecontinuedtofallduringtheyear.
AcentralisedCorporateAssurancefunctionwas
establishedtodeliverconsistentprocessesacrossthe
group.Tostreamlineadministration,wenowhaveasingle
managementsystemthatintegratesoccupationalhealth
andsafety,qualityandenvironmentalrequirements.
Wealsorolledoutnewdatacommunicationsto
55locationsinAustraliaandNewZealand,andimproved
ourabilitytohandleahighervolumeofhelpdeskenquiries.
8 Programmed Maintenance Services
LukeDickinsonworkingatTheVillageGlenisoneofthemanyProgrammedMaintenanceServices’groundspeopleprovidinggroundsandgardensservicesthroughoutAustralia.Sitesvaryfromsportingovalsanduniversitygroundstoretirementvillages,petrolstationsandcivicparks.
Managing Director’s Review 9
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LukeDickinsonworkingatTheVillageGlenisoneofthemanyProgrammedMaintenanceServices’groundspeopleprovidinggroundsandgardensservicesthroughoutAustralia.Sitesvaryfromsportingovalsanduniversitygroundstoretirementvillages,petrolstationsandcivicparks.
Managing Director’s Review 9
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ThemergerwithIntegratedGroupmorethandoubles
thecompany’sannualisedrevenueandhasincreased
itsmarketcapitalisation.Itwillalsofurtherdiversifyour
earnings,improvecashflow,tripleournumberof
employeestomorethan9,500andprovidealarger
geographicfootprint.
Combiningthetwobusinesses,however,promisesfar
morethanthat.Itoffersscopetobundlemoreservices
andofferthemtoabroadercustomerbase;expandlabour
hireservicesintoNewZealandandtheUnitedKingdom;
streamexistingProgrammedMaintenanceServices
expertiseintomorelocations,particularlyinWestern
Australia;andexpandbusinessinindustrieswhere
Integratedhasastrongpresence,suchasminingand
marine.Itwillalsocreategreaterlabourflexibilityacross
thegrouptomeettightregionallabourmarketconditions
andseasonaldemands.
Consistency of EBIT margins
2000
40
35
30
25
20
15
10
5
0
Cent
spe
rsha
re
20012002
20032004
20052006
2007
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
EBIT
/Rev
enue
%
EBIT EBIT/Revenue
7Managing Director’s Review
Managing Director’s Review continued
Australian Property MaintenanceTheAustralianPropertyMaintenancebusinesseshada
verysuccessfulyear.Tightercontrolsoverjobmanagement
ledtoastrongupliftinmargins,particularlyinAustralian
Painting,withearningsbeforeinterestandtaxincreasing
by31.9percent,comparedwitha19percentincrease
inrevenue.
TheAustralianPaintingbusinessperformedstrongly,
especiallyinVictoria,NewSouthWalesandQueensland.
Improvedestimating,performancemeasurementand
reportingsystemscontributedtogreateraccountability
andcorrespondinglyimprovedoutcomes.Revenue
fromlong-termmaintenanceprogrammesincreased
andseveralsignificantprogrammeswererenewed,
includingmaintenanceofsomeiconicracecoursesand
prominentschools.Majorprojectsrangedfromdetailed
decorationofSydney’sGreatSynagoguetopainting
communicationspiresontopofMelbourne’s60storey
101CollinsStreettower.
Multi-siteprojectscompletedduringtheyearincludeda
trafficmanagementprogrammetoimprovetrafficflow
andsafetyinsome700supermarkets,andinterior
refurbishmentofstoresthroughoutAustraliaforamajor
retailchain.
Inthepresentstrongbusinessclimate,morecompanies
aredifferentiatingthemselvesthroughre-imaging,resulting
inincreasedrevenueandprofitforourAustralianCorporate
Imagingbusiness.Projectsincludedthe235-storerollout
ofTyrepower’svibrantnewbranding,andcreatingan
excitingnewlookforluxurycarshowroomsinSydney
andMelbourne.
OurBuildingServicesbusinessimprovedstronglyin
thesecondhalf,aidedbyexcellentperformancein
SouthAustraliaandconsiderableprogressinVictoria
andNewSouthWales.Thebusinesscontinuedtodiversify
itsrevenueandskillsbaseandaddedtothenumberof
itsmulti-site,multi-servicenationalcustomers.Thisis
expectedtoleadtofurtherrevenueandearningsgrowth
in2007-8.
Programmed Maintenance Services10
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Managing Director’s Review
Weadoptedastrategytogrowthebusinessthrough
broadeningtherangeofservicesweofferedourexisting
customersacrossAustralia.Wealsobegantodiversify
ourserviceofferinginNewZealandandenteredthe
UnitedKingdompaintingmarket,whereourmaintenance
programmesareunique.Theresultwasastronger
business,withawidercustomerbaseandconsistent
year-on-yeargrowth.Operatingcashflowimproved
substantiallyandwehavebeenabletoincreaseour
dividendpayoutratioandfullyfrankdividends.
Todayweprovideabroadrangeofoutsourcedservices.
AustralianPainting,whichhasdoubleditsrevenueinthe
pasteightyearsandcontributedstronglytothelatest
result,provided33percentof2006-7grouprevenue.
Combiningourmulti-servicemodelwithgeographic
expansionhasthepowerfuleffectofcompoundinggrowth.
Ithasreducedbusinessrisksandprovidedaccesstoa
largermarket.Wecannowaddgreatervaluetolarger
businessesandgovernmentorganisationswith
multiplesites.
Systemstomanagemulti-sitecontractshelpedus
coordinateservicesduringthepastyearacrossmore
than60Myerstores,whereweprovidepainting,plumbing,
refurbishment,electricalandcomplianceservices.
Similarly,weprovidedmultipleservicesforothernational
groupssuchasacinemachain,Telstra,Orica,retail
chains,andspecialtystores.Wealsoprovidethe
AustralianElectoralCommissionwithmaintenanceand
complianceservices.
Ourcapacitytoassistmulti-siteorganisationswith
outsourcedservicesolutionshasincreasedsubstantially
sincetheendofthefinancialyearwiththeIntegrated
Groupmerger.ThisisthenextstepinProgrammed
MaintenanceServices’strategicevolutionandweare
excitedbythegrowthopportunitiesitprovides.Thegroup
nowhasafull-serviceofferingcoveringthespectrumfrom
labourhire,recruitmentandmanagedlabourservices,
throughtopropertymaintenanceandinfrastructure
services,givingusscopetocontributegreater
customervalue.
IampleasedtoreportthatProgrammedMaintenanceServicescontinueditsgrowthmomentumin2006-7andgeneratedanotherrecordresult,ledbyastrongperformancefromourAustralianPropertyMaintenancebusinesses.
Particularlysatisfyingwasthesignificantincreaseinrevenuefrommulti-service,multi-sitecontracts,validatingthestrategywehaveimplementedsinceASXlistinginOctober1999.Investorsthenwereconcernedaboutourabilitytoexpandthebusiness,thecompany’soperatingcashflow,lowdividendpayoutratioandlackoffranking.
Max FindlayManagingDirector
“ThemergerwithIntegratedGroupmorethandoublesthecompany’sannualisedrevenueandhasincreaseditsmarketcapitalisation.Itwillalsofurtherdiversifyourearnings,improvecashflow,tripleournumberofemployeestomorethan9,500andprovidealargergeographicfootprint.”
ProgrammedMaintenanceServices6
RhysWight,left,andPeterSmith,atopthe101CollinsStreettowerinMelbourne,arepartofProgrammedMaintenanceServicesabseilcrew,whichspecialisesindifficult-to-reachmaintenanceprojects.
Photographerwasfellowpainter,RobbieSchimmelpfenning,whowasworkingontheadjacentcommunicationantenna.
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Managing Director’s Review continued
TheGroundsManagementbusinessalsohadavery
strongyear,especiallyinVictoria,SouthAustraliaand
Queensland.Itsnationalpresenceenabledittosecure
amajorcontractforWoolworths’petrolstations,and
thebusinesswasappointedbySpotlesstomaintainthe
groundsatDepartmentofDefencebasesinsouth-east
Queensland.Newmulti-sitecontractshaverecently
commencedwithMacquarieGoodmanandNewSouth
WalesPolice.
Ournationallandscapingserviceattracteddiverse
customers,rangingfromtertiaryinstitutionstothe
VictorianArtsCentre.Italsoexpandeditsshareofthe
newhomedevelopmentmarketwiththecompletionof
majorlandscapingworksandstrengtheneditsposition
intheeducationsector.
Ourinfrastructureandfacilitiesmanagementbusiness,
Tungsten,wasrestructuredtoincorporateInfraserv,and
considerablenewbusinesswasgenerated.Tungsten
providesawiderangeofhighlevelmanagementskills,
includingengineers,fitters,plumbers,groundsandother
services,toprovidelargeindustrialandminingsiteswith
solutionsfromsecurityatthefrontgatetoemergency
fireandaccidentresponseteams.
TungstensecuredanewcontractcoveringBHPBilliton
sitesinWesternAustraliauntil2011,whileitscontract
forBHPBilliton’ssitesinVictoriaandSouthAustraliawas
extendeduntil2011.Italsogainedsignificantlong-term
contractsfromPortofMelbourneCorporation,theWater
CorporationofWesternAustralia,YarraValleyWaterand
ASSAAbloy.Reflectingitscommunityprofile,Tungsten
wontheToyotaCommunityArtsAwardforFrankston
CityCouncilinVictoriaandwasnominatedforthe
nationalaward.
Industrial ServicesTheBarryBros.industrialservicesbusinesscontinuedto
increaseitsrevenuefollowinginvestmentinnewequipment
andopeningbranchesatGosford,NewSouthWales,and
theGoldCoast.Earnings,however,wereconstrainedby
drought,whichcausedunder-utilisationofequipment,so
whilerevenueincreasedby19percentovertheprevious
year,earningsbeforeinterestandtaxdeclinedmarginally.
12 ProgrammedMaintenanceServices
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StanwellPowerStation,pictured,isoneofTungsten’scurrentQueenslandcustomers.Tungstenhasextensiveexperienceintheassetmanagementandmaintenanceofwaterutilities,powergenerationsites,educationalfacilities,correctionalfacilities,localgovernmentinfrastructure,publichousingandindustrialmanufacturingsites.
13Managing Director’s Review
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Profitablegrowthofnon-paintingserviceshasenabled
ustocontinuefullfrankingofdividends,whichincreased
from17cto18.5casharefortheyear.Increasedfranking
andour60percentpayoutpolicyhavecontributedtoa
re-ratingofthecompany’sshares:duringthethreeyears
toMarch2007,shareholdernumbersroseby60percent
to4,700andtheshares’historicalprice-to-earningsratio
grewfrom11timestomorethan18times.
AmajorbenefitofProgrammedMaintenanceServices’
strategicprogressionhasbeenthestronggrowthingross
operatingcashflow,whichincreasedby71percentto
over$31.3million.Thiswasachieveddespitecontract
recoverablesrisingby7percent.
Thedebt-to-equityratioincreasedto67percentfrom
59percentat31March2006,with$16.1millionofplant
andequipmentpurchasedduringtheyear.Netinterest
payments,whichwerehigherduetothenewequipment
andtheacquisitionofTungsten,werecovered6.2times.
WewelcomeIntegrated’schairman,NeilHamilton,
andnon-executivedirector,JonathanWhittle,tothe
ProgrammedMaintenanceServicesboard,andIthank
myfellowdirectorsfortheircontributionduringtheyear.
Inparticular,IwouldliketothankourManagingDirector,
themanagementteamandallouremployeesforanother
recordresult,andshareholdersfortheircontinuingsupport.
Changing mix of revenue 1989–2007
1999RevenueRevenue
A$85 million
IndustrialServices13%
GroundsServices4%
BuildingServices1%
NewZealand15%
AustralianPainting67%
AustralianPainting100% 1989
RevenueA$46 million
2006-07Revenue
A$333 million
UnitedKingdom9%NewZealand12%
GroundsServices10%
BuildingServices12%
Tungsten16%
IndustrialServices8%
AustralianPainting33%
Chairman’s Report 3
Growth in dividends and franking
20022003
20042005
20062007
20
18
16
14
12
10
8
6
4
2
0
Cent
spe
rsha
re
Franked
Unfranked
Managing Director’s Review continued
DemandisincreasingforBarryBros.’Envirovac
infrastructuresweeping,non-destructivediggingand
concretedemolitionservices.Theseserviceshave
beenparticularlysuccessfulinVictoriaandQueensland,
andarereducingthebusiness’dependenceondrain
cleaning.DemonstratingtheroleBarryBros.canplayin
emergencies,ourteamsworkedcloselywithauthoritiesto
cleanupaftertheLismoretrainderailmentinsouth-west
VictoriaandtheBurnleyTunnelaccidentinMelbourne.
Whilethedroughtcontinuestohaveanimpactonthe
business,plansareinplacetoensuretheadditional
equipmentpurchasedin2006-7isbetterutilisedin
2007-8.
New ZealandTheperformanceoftheNewZealandproperty
maintenancebusinesswasaffectedbypoorweather
interruptingprojectsandbytherelativestrengthofthe
Australiandollar.InNewZealanddollars,revenue
increasedby16.9percentandearningsbeforeinterest
andtaxgrewby0.8percent,butaftertranslationinto
Australiandollarsearningswere5.9percentweaker.
Indicatingtheunderlyingstrengthofourpainting
programmesinNewZealand,contractrecoverables
rose17percenttoNZ$65million.
Newbrancheswereopenedonthenorthshoreof
AucklandandinGisborne,bringingthetotalto15.
Thebuildingservicesbusinesscontinuedtogrowstrongly
fromalowbase,completinganumberofprojectsand
makingapositivecontribution.
Trainingprogrammesandnewprocessesarebeing
introducedtoimproveprojectplanning,operational
performance,customersatisfactionandsafety,aswell
astoattractandretainskilledtradespeople,whoremain
inshortsupply.
Severallongtermcontractswererenewed,anda
significantrefurbishmentprojectwascompleted
successfullyafterfinancialyear-end.
United KingdomWhittlePaintingGroup,ourUnitedKingdombusiness,
continuedtoincreaseitsrevenueandearnings,although
marginswereaffectedbyabaddebtinthefirsthalfand
underperformancebytwobranches.
Weexpandedourmarketfootprintthroughtheacquisition
ofasmallpaintingbusinessinLeeds,bringingthenumber
ofbranchestonine,coveringthenorth-west,north-east,
midlands,south-westandeastofEngland,aswellasthe
ThamesValley.
Ourlongtermmaintenanceprogrammesremainunique
inthemarketandtheyaregainingincreasingrecognition,
particularlyintheeducationsector.Werenewedour
partnershipswithLancasterandDerbyHomes,completed
projectsatseveralprisonsandgainedaprogramme
fromtheQueen’sestateatSandringham.The70new
programmessignedduringtheyearbringthetotaltoover
420,withacombinedvalueof£14.8million(A$36million).
Programmed Maintenance Services14
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Chairman’s Report
Duringthepastyearwetookourmostsignificantstepso
farwiththemerger,throughaschemeofarrangement,
withIntegratedGroupLimited.Themergerofthetwo
companieswillbroadenourrangeofservicesfurther,
addinglabourhire,recruitmentandmanagedlabour,and
alsoincreaseourmarketfootprint.Thecombinedgroup
willhaveannualisedrevenueexceeding$800millionand
themergerisprojectedtobeearningspersharepositive
beforesynergiesin2007-8.
Themergerwascompletedon7Juneandisalogicalstep
inProgrammedMaintenanceServices’growthasaleading
providerofoutsourcedservices.Itfollowsourpurchaseof
infrastructureservicescontractsfromSercoin2004and
oftheTungsteninfrastructureandfacilitiesmanagement
businessin2005.
Throughdiversifyingourservicesandincreasingour
coverageofthethreecountrieswhereweoperate,
wehavebroadenedourearningsandrevenuebase.
Wenowmaintainandprotectlandmarkbuildings,retail
outlets,industrialsites,educationalfacilities,sporting
groundsandinfrastructure,andincreasinglyweare
providingmultipleservicestocustomerswithmultiplesites.
Ouractivitiesextendtooperatingwaterrecyclingplants,
carryingoutcomplianceassessmentsforlargeinstitutions,
andmanagingcatering,IThelpdesksandemergency
responseteams.
Reflectingthisdiversification,60percentofAustralian
revenuein2006-7camefromservicesotherthanpainting,
comparedwith50percentthepreviousyear.While
marginsonthesenewerservicestendtobelowerthan
onourtraditionalmaintenancepaintingprogrammes,our
averageEBITmarginof11.6percentwasinlinewithplan
andremainswellaheadofotherlistedservicesgroups.
In2006-7,ProgrammedMaintenanceServicesachieveditsninthconsecutiveyearofdoubledigitprofitgrowth.Thisconsistentperformancehasbeentheresultofourlong-termstrategytodiversifytheservicesweofferandexpandourgeographicalcoverage.
Geoff TomlinsonChairman
“Therehasbeenanencouragingstartto2007-8,withstrongorderbooksacrossourbusinesses,andthecompanyiswellpositionedtoaccelerateitsrateofgrowth.”
ProgrammedMaintenanceServices2
RichardGoodwinpolishesaTyrepowermonolithsignbeforefinalinstallationononeofthecompany’s235storesites.
OurAustralianCorporateImagingbusinessisaspecialistinhelpingcompaniestostandoutfromthecrowdbyapplyingstrong,consistentbrandingacrosstheirretailnetworks.
15Managing Director’s Review
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Managing Director’s Review continued
Businessdevelopmentwasstrengthenedandtwo
experiencedsalespeopleweretransferredfromAustralia
andNewZealandtofurthersupportthegrowthofour
programmebusiness.WhittleachievedISO9001
accreditationforitsservices,andasurveyreflecteda
highlevelofcustomersatisfaction.
WeexpecttoseesolidgrowthintheUnitedKingdomas
wecontinuetoincreaseourmarketpresence.
The FutureProgrammedMaintenanceServiceshaschanged
substantiallysincethecompanylistedontheASXnearly
eightyearsago.ThenwewerelargelyanAustralianand
NewZealandpaintingbusiness,withotherservices
contributingonly18percentofrevenue.Todayweare
adiversifiedoutsourcinggroupprovidingawiderange
ofservicestoseveralthousandcustomersandwith
branchesthroughoutAustralia,NewZealandandthe
UnitedKingdom.
Thecompany’srecordofconsistentdoubledigitincreasesin
earningsledtoourinclusioninForbesAsia’s2006listofthe
region’sbest200companieswithsalesunder$US1billion,
basedontheirrecordsofsustainedgrowthandprofitability.
Butthisisonlythebeginning.ThemergerwithIntegrated
Groupwillleadtoasignificantlymorerobustcompany,with
expandedrevenueopportunitiesandastronggrowthprofile.
IwelcomeallIntegratedGroupemployeeswhojoinedusin
June.Ialsothankourcustomersfortheircontinuingsupport
andeachmemberofthegrowingProgrammedMaintenance
Servicesteamforcontributingtothevitalityofthecompany
andtoitsstrongmarketposition.Together,theyhaveenabled
ustocontinueourmomentumandgivenustheconfidenceto
planforfurthergrowth.
Max FindlayManagingDirector
15June2007
ProgrammedMaintenanceServices16 ProgrammedMaintenanceServices16
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PaulGravellofBarryBros.providingdraincleaningservicestotheTelstraDome.
Theseincludeidentifyingundergroundassetsthroughnondestructivediggingtechnology,highpressurewaterjetting,vacuumloading,Envirovacsweepingandwaterrecycling.
17Managing Director’s Review