Mega projects propel BCS Group into record year
Technology company BCS Group has just reported a record year, almost doubling its turnover and securing some high profile international wins in both the airport and logistics sector.
CEO Patrick Teo said the company is finalising its year end numbers and expects to top out at $140m FY14 revenue, a $60m rise from the previous year, and marking a CAGR of 22% from 2010.
BCS Group, headquartered in New Zealand and with over 400 employees globally, operates in the airport and courier sortation systems, operations and maintenance and solutions and services sectors.
Many of BCS’ contracts are now in excess of $NZ25m per contract. Teo said that the company’s recognized ability to deal with large, multi-million dollar contracts is instrumental and contracts with individual value greater than NZ$5m now make up more than 75% of the company’s annual revenue.
Winning very large baggage handling, self service check-in and courier sortation projects across the world in a market that seems to be building bigger and more efficient centres has certainly fuelled the growth.
“We are seeing the results of developing very good working relationships with all the leading airports in Asia Pacific, including Singapore, Kuala Lumpur, Beijing and Bangkok to provide innovative solutions that help at check-in and baggage handling. We’ve also partnered with aviation specialists like SITA, which has given us an entry into lucrative new markets with our innovative technology.
“As costs impact on airlines and airport operators, they are becoming much keener to use technology that improves the operation of the airport both from a customer perspective as well as their own financial performance.”
Teo said the company had just completed its largest ever contract, for Kuala Lumpur Airport, where it scooped up a multi-million dollar extension to its contract to complete Malaysia’s KLIA2 baggage handling system, on the back of a surprise termination of another contractor by Malaysia Airports Holdings Bhd.
The additional work made it one of the largest airport projects of its type ever awarded to a New Zealand company and the contract provides ongoing revenue for the company through operations and maintenance contracts.
“This past year also saw us working closely with the two leading courier companies in Australasia, Toll and TNT, who saw BCS as providing solutions that created a competitive edge for their operations,” he said.
BCS Group won the internationally-contested bid to build a highly specialised sortation system for the largest express parcel sorting facility in Australia. Toll Group is currently building a 53,000 square metre facility using BCS’ sortation system, to help grow the capabilities of a new online parcel delivery service, and triple its parcel sorting capacity.
Teo said the project used a combination of BCS Groups hardware solutions and smart software products Freightflow and SYM3 to provide maximum transparency of its operations, as well as tracking and accurate loading for maximal operational productivity.
“We have made a considerable commitment to R&D within the group, and with the recent $2.4m grant from Callaghan Innovation, we intend to fast track some projects that will ensure we maintain our growth momentum.”