Resolve FM, Metalbilt, NZ Fire Doors, Danks Roller Doors, Energy Products International Resolve FM Metalbilt Doors NZ Fire Doors Danks Roller Doors Energy Products International

Review of operations Fire & Property Services division

The Fire & Property Services division includes Norfolk’s property services and building products businesses. Companies within the division include Resolve FM, Metalbilt, NZ Fire Doors, Danks Roller Doors and Energy Products International.

The property services businesses include the coordination and delivery of a range of services, including:

  • integrated facilities management
  • operational and sustainable maintenance
  • asset management
  • workplace solutions
  • support services
  • call centre capabilities.

Norfolk Building Products includes the manufacture, distribution and installation of the following products:

  • roller shutter doors and grilles
  • sectional overhead and bi-fold doors
  • fire-rated roller shutters and sliding doors, fire and smoke curtains
  • fire-rated and non-rated doors, including E-Core® fire doors
  • heating and cooling, and air filtration systems.

Financial results summary

For the year ending 31 March 2009, excluding discontinued operations, the division delivered revenue of $87.8 million (FY2008: $88.9 million), for EBIT of $4.0 million and an EBIT margin of 4.5 per cent.

The main impacts on financial performance for the period were the rapid decline in the New Zealand economy, and the general unpredictability of macro-economic conditions in Australia.

Resolve FM

Despite the declining economic conditions, Resolve FM recorded a solid performance in the 2009 financial year. Of particular note was the winning of a number of high quality new contracts with the University of Wollongong (New South Wales) for its Innovation Campus, Ford Motor Company, Australian Air Express, KPMG, Mercedes and the Department of Immigration and Citizenship’s (‘DIAC’s’) detention centre on Christmas Island.

Resolve FM also continues to work with General Motors Holden, DIAC — including their detention and transit centres, South Windsor Correctional Centre (New South Wales), American Express, Credit Suisse, the Department of Human Services (Victoria) and the Department of Housing (HomesWest) in Western Australia.

Resolve FM has actively positioned itself in the market to deliver outstanding technical solutions for its customers and throughout the year maintained its focus on the commercial property, tertiary education, industrial and automotive, custodial and accommodation services, defence and health sectors.

During the year Resolve FM had the opportunity to bid for its first Public-Private Partnership (‘PPP’) project in corrective services. Going forward, the company expects further PPP opportunities to eventuate within its areas of focus, contributing to a solid base of long-term contracts.

In the second half of the year, Resolve FM stepped up its call centre activities with increased technical capabilities to deliver tailored call centre solutions. Since then, calls handled through the centre have increased from 2,000 to 20,000 calls per month.

Resolve FM has revised the structure of the company into regions to better reflect the needs of customers and considerable emphasis has been placed on business development initiatives that will flow into 2010. The company will continue to consider strong-margin, national and international opportunities on the back of existing customer relationships.

Following the tragedy of the bushfires in Victoria, Resolve FM carried out a number of refurbishments of caravans to be used as temporary accommodation for bushfire survivors, on behalf of the Department of Human Services.

The outlook for the facilities management sector is promising, with flow-through of government stimulus packages expected to positively impact accommodation upgrade activities and with the tightening economy driving a higher focus on cost reductions. Specialist facility management companies, like Resolve FM, can bring the necessary expertise to deliver cost reductions through strategic outsourcing.

Through its commitment to key sectors — commercial property, tertiary education, industrial and automotive, custodial and corrective services, defence and health — and an increased focus on the delivery of technical solutions for clients, Resolve FM is looking forward to achieving further growth.

Building Products

Australia

Due to the impending expiry of the property lease at its Brookvale, New South Wales manufacturing plant and head office in March 2009, Trafalgar Building Products undertook a total review of its business.

The review, which began in late October 2008, concluded that the relocation costs and necessary reinvestment in plant and equipment would not meet acceptable return on investment criteria. Consequently, the decision was made to restructure and/or divest all or parts of the business.

The first stage of this process involved the closure of the fire door and E-Core® core manufacturing businesses at Brookvale and the sale of the frame assembly and fire door distribution business in Victoria, reducing headcount by 75 per cent. At the same time, Trafalgar outsourced E-Core® core manufacture to offshore suppliers.

Stage two of the restructure/divestment involved separate sale transactions for the passive fire protection products distribution business and the E-Core® door system business. While in process at the financial year end, these transactions were ultimately completed to the satisfaction of the company post financial year end.

New Zealand

The solid result of Norfolk’s Building Products’ companies in New Zealand was largely attributable to strong sales performances by Energy Products International (‘EPI’) and Metalbilt Doors, and a keen focus on cost management across all companies.

EPI saw strong demand for its air handling units, boilers, radiators and chillers in a number of infrastructure areas including education, hospitals and airports, and a number of government buildings. Key customers and projects during the year included The No. 1 Featherston Street building in Wellington, Braemar, Waikato, Wairau and Hutt Hospitals, Rotorua Court buildings, Auckland Airport, the National Archives, University of Canterbury Biological Science, Vogel Integrated Campus, Fonterra and Weta Digital.

The strength of Metalbilt’s existing customer base and its backlog of work — including Fletcher Construction, Hawkins Construction, Mainzeal Property & Construction, Brookfield-Multiplex, Ebert Construction, Calder Stewart, Hayden & Rollett and Bridgestone — was instrumental in the attraction of high-quality installation and service projects in a broad range of market sectors, with particular emphasis on education, hospitals, industry, food distribution and processing and airports.

With its new Fyreshield™ fire rated roller door system, Metalbilt secured the installation contract for the AMI Stadium upgrade in Christchurch in the lead-up to the 2011 Rugby World Cup, and has secured a service contract with Kmart across its New Zealand stores. More recently, Metalbilt has secured contracts with Eden Park Stadium in Auckland and the New Zealand Defence Force.

Both NZ Fire Doors and Danks Roller Doors experienced difficult conditions due to a fall in construction and industrial developments in New Zealand. Despite the challenges, NZ Fire Doors secured projects with the Britomart Transport Centre in Auckland and a number of universities and hospitals.

Research and development activities that commenced in mid-2008 are expected to flow through to sales opportunities as the market recovers. The focus on innovation has already resulted in Metalbilt’s development of the only New Zealand designed, tested and manufactured range of fire rated, roller shutter door systems (‘Fyreshield™’).

Although uncertain economic conditions prevail, Norfolk Building Products will maintain its focus on infrastructure projects and commercial construction with fire protection needs (i.e. sports stadiums), secondary and tertiary education, airports, hospitals and public buildings.

The door businesses will also focus on building their earnings through the delivery of recurring service and maintenance work.