An Auckland local government-owned consulting company is paving the way towards privatisation by expanding beyond its traditional operating borders.
Manukau Consultants, a local authority trading enterprise owned by the Manukau City Council, has increased its earnings threefold in three years by seeking business outside Manukau.
It has won significant contracts,including three-to-five-year road network maintenance contracts for the Rodney, Rangitikei and Manuwatu District councils. That is in addition to a $45 million contract it has with Manukau City.
Operating earnings have been lifted above $1.2 million in its latest financial year.
Company chairman Alan Murray said this was extremely satisfying, but no cause for complacency.
He said the growth stemmed from a deliberate policy to work with competitors on new projects.
"This team strategy on major contracts has minimised disputes and led to better solutions," he said.
The company has a staff of 150 engineers and consultants operating throughout the North Island.
Mr Murray said new technology had allowed these consultants to work together and the company is looking to expand further afield.
Company officials have hinted that future plans might include privatisation.
If that goes ahead, a possible buyer would be Excell Corporation, an infrastructure maintenance and construction group that was itself previously owned by the council.
It is now controlled by interests associated with construction and property tycoon Wayne Hartner and entrepreneur Eric Watson.
Since its privatisation, Excell has expanded offshore and is taking on dominant infrastructure services groups in Australia.
Excell also paid $7.3 million for Pencarrow Group, a local authority trading enterprise owned by the Hutt City Council. That purchase added about $23 million in annual turnover to Excell's billings of more than $100 million.
Shareholding in Excell is expected to be offered to the public through a public offering.
