Holly Ryan

Retail, Innovation and Manufacturing reporter for the NZ Herald

BCS revenue passes $100m mark

Patrick Teo, chief executive of airport software company, BCS Group.
Patrick Teo, chief executive of airport software company, BCS Group.

BCS Group has broken through the $100 million revenue barrier as the Auckland-based airport systems and logistics company wraps up a multi-millon-dollar contract with Kuala Lumpur International Airport - a deal chief executive Patrick Teo says hit the sweet spot.

The company won the contract after the airport terminated its original agreement with Matromatic Handling Systems after that company ran into financial difficulties.

BCS had already been consulting for the airport, however the additional work brought the contract total to $55 million.

The work involved the completion of baggage handling systems at Kuala Lumpur's 242,000sq m international terminal and was an indication of the direction Teo hoped the company would grow.

"Where we were eight years ago, we were doing one to three million dollar projects. Our switchfoot now is 20 to 30 million dollar contracts, and we're hoping to hit $100 million projects in the near future," he said.

Three years of strong growth and the bigger contract with the airport had seen the company surpass the $100 million revenue mark for the first time, with the financial year end total expected to be about $140 million.

In the past year, BCS has picked up further contracts across Asia, including in Malaysia, Indonesia, Cambodia, China and the Philippines, with global exports outside of Australasia tripling over the past two years.

Company growth had kept staff busy Teo said, however he attributed success with being able to deliver on promises, no matter how much work the business was undertaking.

"Our number one priority is to knuckle down and make sure we deliver on all those contracts," he said.

"At the same time we aren't being complacent, we're looking beyond what happens in the next two to three years."

In a further boost, the company secured a $2.4 million grant from Callaghan Innovation earlier this year, which Teo said would help the company build further technology and gear up for bigger projects.

"People are the main reason we have been so successful. Everyone says that but in our case it's definitely true," Teo said. "Innovation is a close second though. We know the big boys have a much bigger budget than us but they're very focused on the mechanical side of things, where we focus on software. R&D is huge for us and a lot of that has been through Callaghan."

The company's current focus was on the Asia-Pacific region, with hopes to extend into Africa and expand on projects in North America.

- NZ Herald

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