Projects } TBK Capital

Essential Infrastructure Business

EPCM Limited is the result of an amalgamation of 4 separate commonly owned New Zealand companies that provide industrial electrical services to blue chip businesses, and government SOEs such as Vector and Transpower. EPCM was deemed an essential business during the Covid-19 lockdown.

EPCM Limited is the result of an amalgamation of 4 separate commonly owned New Zealand companies that provide industrial electrical services to blue chip businesses, and government SOEs such as Vector and Transpower. EPCM was deemed an essential business during the Covid-19 lockdown. 

The company name stands for Engineer, Procure, Construct, Maintain. It has been operating for 20 years in a highly technical and regulatory market with significant barriers to entry. EPCM specialises in the design and manufacture of containerised power reticulation and energy storage systems.

All its switchboard systems are type tested and compliant with AS/NZ and IEC standards. In addition to selling and installing industrial switchboards, EPCM offers maintenance contracts - which provides it with regular income.

The company has ISO 9001, ISO 14001 and BS OHS 18001 Registration.

Customers
The business has a diverse split of geographic locations. 60 % of its work is concentrated in New Zealand, with the remainder being the Pacific Islands with 20%, and Australia and other territories 20%

Customers include Vector, Spark, Vodafone, Fulton Hogan, Auckland Airport, Santos, Chevron, NZTA, Queensland Curtis LNG, Rio Tinto, Siemens, Ryman and Transpower.

The Business
All switchgear and switch room works are one off, meaning they are custom-made in nature. Competition is minimal. EPCM is capability ISO accredited and has no work quality issues.

The revenue profile is 40/40/20 - 40% deposit, 40% on factory acceptance testing and 20% on delivery. So cash flow is immediate and progressive with each order. This is non-standard in the industry, and even in the wider economy. EPCM can request these payment terms due to its abilillity to complete complex tailored contracts. Accordingly jobs become self-funding.

As part of this wider re-organisation, EPCM has a strong book of pending and confirmed orders. Full-time staffing has recently been downsized to allow for a more variable cost base.  It now has a core team of skilled staff and will introduce contractors for semi-skilled work thereby controlling labour costs.

With the mining industry opening up in Australia EPCM has secured new container switchroom contracts, and through already maintained relationships will be extending its sales into that market.

The Founders
Ian Linstrom and his brother Alan are both qualified Electricians. They work closely with their customers and take a partnership approach that ensures any design and build contract is completed to the highest standard. This results in continuing repeat business.

Ian is also a NZCE Electrical Engineer with over 30 years’ experience in low voltage systems in Australasia. Having worked across many industry sub-sectors, he is also a specialist in maintained power systems including:

  • Data centre electrical design.
  • Generator synchronising switchboards.
  • Battery energy storage.
  • High power heavy current up to 120kA and 6300A.

The Offer
EPCM is now seeking working capital of $500,000 to finance the expansion of its current operation through the issue of new ordinary shares. Based on a recent valuation of the business of $2,248,885, this is equivalent to 22% of the shares in the company.

Reply to this email or call me on +64 21 902 901 for a copy of the Information Memorandum.

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The above investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.

Cheers




John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz

 

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