Spotless Group has added to its skills set with another acquisition, this time of Paul McMurtrie’s Nuvo, which concentrates on electrical contracting, technology services and solar PV systems, at a time when the company hopes its recent rough patch was making way for better news.
Mr McMurtrie started Nuvo in 2002 after co-founding NuGreen Solutions. He will continue to lead the operation under the new banner.
The Melbourne-based company provides technical services including data platforms, security systems, electrical systems, voltage optimisation, smart systems, building technologies, CCTV, audio visual, lighting, renewable energy, energy efficiency, battery storage and technology integration.
Its clients have included Investa, Melbourne University, Victorian Government Department of Education, The Goods Shed, Crown Towers, the Melbourne Cricket Ground and Essendon Airport.
In 2015 it designed and installed a 40 kW rooftop solar array for T4 at Melbourne airport that is expected to generate 46,000 kwH of electricity a year and also installed a solar system for the Robinvale Hospital.
“This is a modest acquisition of a boutique operation which has strong growth potential, adds to our capability and has a contract footprint in our priority sectors, including tertiary education and health,” Spotless chief executive Martin Shepherd said.
“It will make a positive contribution to our FY17 result and presents a great opportunity to combine offerings with other Spotless services.”
In the past two years Spotless has acquired Utility Services Group and mechanical engineering and technology firm AE Smith, which installed Sydney Town Hall’s trigeneration system.
The new capabilities are expected to enable the company to cross-sell services to clients of its other branded entities in the sectors of food service, facilities management, asset and facilities maintenance, laundries, cleaning, security, and utilities services and management.
Better news ahead, shareholders hope
Spotless Group, chairman Margaret Jackson said it had been a “challenging year” for the group.
The company experienced a share price plunge in December 2015 of around 42 per cent to $1.265, with the share price further deteriorating to the current level of around $1.10.
The company reported FY 2016 sales revenue of $3.176 million, with its facilities management business generating 92 per cent of revenue. The reported $122 million profit after tax was 14.4 per cent down on last year.
There was some good news for shareholders, with new contracts valued at over $130 million signed, and $480 million annually worth of contracts renewed.
New contracts included facilities management and integrated services contracts for the NSW Land and Housing Corporation, SA Health, Ergon Energy and Central Alliance Health NZ.
The company is also part of the consortium that successfully landed the $291 million Victorian Department of Education PPP contract for the design, construction and ongoing maintenance of 15 new schools.