Essential Infrastructure Business
EPCM Limited is the result of an amalgamation of 4 separate New Zealand small companies that provide industrial electrical services to blue chip companies and government SOE’s such as Vector and Transpower. EPCM was deemed an essential business during Covid-19 lockdown.
EPCM Limited is the result of an amalgamation of 4 separate New Zealand
small companies that provide industrial electrical services to blue chip
companies and government SOE’s such as Vector and Transpower. EPCM was
deemed an essential business during Covid-19 lockdown.
The company name stands for Engineer, Procure, Construct, Maintain, and
has been operating for 20 years in a highly technical and regulatory
market. With significant barrier to entry. The company specialises in
the design and manufacture of containerised power reticulation and
energy storage systems.
All Switchboard systems are type tested and are compliant with AS/NZ and
IEC standards. In addition to selling and installing industrial
switchboards, EPCM offers maintenance contracts which provides regular
income to the business.
Customers
The business has a diverse split of geographies. 50% of its work us
concentrated in New Zealand, with the remainder being the Pacific
Islands 30%. Australia and other territories taking up the remaining
20%.
Customers include Vector, Spark, Vodafone, Fulton Hogan, Auckland
Airport, SANTOS, Chevron, NZTA, Queensland Curtis LNG, Rio Tinto,
Siemens and Ryman.
The Business
All switchgear and switch room works are one off - meaning they are
specially tailored in nature. There are no work quality issues and
competition is minimal consisting of only 3 other switchboard companies.
The operating cycle is unique to EPCM due to its abilillity to obtain
40% deposit with order.
The revenue profile for the business is 40/40/20. 40% on Deposit, 40% on
Factory Testing and 20% on delivery. This is non-standard in the
industry and the wider economy. EPCM can request these payment terms as
it has the ability to complete complex jobs. Accordingly its jobs are
self-funding.
As part of a wider re-organisation, EPCM has a strong order book of
pending and confirmed orders. Full-time staffing has been downsized and a
more variable cost base implemented. It has kept a core team of
skilled staff and will introduce contractors for semi-skilled work to
control labour costs.
2020 and 2021 have been record years in terms of profitability for the
company, with net margins reaching 20%. Net gearing has dropped by 30%
plus with a substantial drop in a bloated wage bill.
The Founder
Ian Linstrom is a qualified electrical engineer with over 30 years’ experience.
The Offer
EPCM is now seeking working capital of $500,000 to finance the expansion
of its current operations through the issue of ordinary shares in the
business. Applications for shares from similar businesses or their
shareholders would be encouraged.
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
For more information, please click the contact button below to send us a message.
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