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Excell Makes Strong Return To Profitability

Excell Makes Strong Return To Profitability

-A Turnaround Seldom Experienced in NZ Corporate History –

Excell Corporation announced plans for growth today following a strong return to profitability.

The company has experienced a $50 million turnaround in performance over the past two years, which is significant for a company of this size. Total earnings have increased substantially, debt considerably reduced and the balance sheet strengthened. Excell has emerged as a successful organisation following a period of uncertainty in 2001 when it faced financial difficulty.

The company has just posted a strong year-end profit, more than doubling last year’s result on turnover of $130 million, and is looking to improve that by 30% in the current year.

David Geor, CEO Excell, believes the dramatic turnaround is attributable to a focus on core competencies and a turnaround plan that included three distinct parts: a disciplined financial programme, strengthening contract management and developing innovative technology solutions for customers.

“The financial programme includes a change of focus from top line growth to sustainable earnings, substantial efficiency gains, sale or closure of loss making businesses and focused reductions in overheads. Excell’s sole shareholder, Cullen Investments, has been very supportive during this period and contributed new capital as well as strong governance principles.

“Strengthening Excell’s ‘on the ground delivery’ of services and business development capability through investing in staff training and employing new managers in key markets have also been part of the new approach to business.

“Excell’s mid-level managers have responded well to a new strong commercial focus, and to managing administrative overheads towards best practice. Much of Excell’s renewed success is attributable to the skills and commitment of its staff,” says Mr Geor.

A reinvestment in fleet vehicles and technology has lifted the company’s performance with state-of-the-art global positioning satellite (GPS) mobile devices now used to service Manukau City Council’s Water business unit. The new GPS technology enables more efficient fleet management, improved customer service and full data capture and management for Manukau City Council. Excell plans to roll this type of technology out to other customers around the country.

“Excell’s competitive advantage lies in its ability to efficiently serve customers through its improved customer service, technology, expertise in asset management and maintenance and the scale of our business.

“Excell’s customers are increasingly sophisticated and are looking not only for efficiency in contract management but for innovation, added value and reliable service delivery. Excell is now in a very strong position to deliver those attributes.

“Excell is on track to post a strong annual profit result at the end of September and is looking to further innovation and growth for its core business over the next year,” says Mr Geor.

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