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Home / Hawkes Bay Today

Quality Roading and Services Wairoa in profit again after overhaul

Andrew Ashton
By Andrew Ashton
Hawkes Bay Today·
7 May, 2018 06:00 PM3 mins to read

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QRS chief executive Nigel Pollock says there is growing confidence within the company. Photo / Kevin Weatherley

QRS chief executive Nigel Pollock says there is growing confidence within the company. Photo / Kevin Weatherley

The sun is shining once again on civil contracting company QRS, as a company restructure six months ago gets the credit for a $436,000 turnaround in fortunes.

At the end of the last financial year (ended July, 2017) Wairoa District Council-owned contractor Quality Roading and Services Wairoa posted a pre-tax loss of $210,000.

However, after it made four redundancies and appointed a new chief executive in October, the company's latest six-monthly financial report (ended December 2017) posted a pre-tax profit of $226,000.

"Call it a company overhaul, call it a change of culture, at QRS there's a bright outlook and growing confidence in our company," chief executive Kevin Pollock said.

"It's a great place to work and we're seeing that in the quality of people applying for jobs here."

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Mr Pollock said the company's Wairoa-based staff were its point of difference with more than $5 million going out in wages each year.

"As one of the major industries in the region, we generate substantial employment and earnings. This level of influence extends into the homes and businesses of our communities throughout Wairoa. Our continued success helps drive Wairoa's success."

Job security and satisfaction both had a positive effect on company performance.

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QRS board chairman Guy Gaddum said the company was becoming more adaptive, innovative and profitable because of the ongoing culture change.

"A company's culture is a reflection of leadership, but it's also about the collective thinking and behaviour of the whole company. At QRS we're in a period of transformation which includes taking on more than just our traditional clients and work."

Revenue was up $1.7m since last year and an interim dividend of $50,000 had been paid.

Gaddum said developing a great internal company culture was helping distinguish the QRS brand nationally.

"It's working well judging by the new contracts secured."

As well as the WDC contracts worth $8m, QRS secured income via its Higgins held Network Outcome Contract to maintain and service Hawkes Bay's state highways, its Juken New Zealand forestry roading contracts, and the recently-awarded $8m Safe Roads contract with NZ Transport Agency.

"Sometimes it can be difficult to think long-term when there's so much going on every day. But the effort this company is putting into diversifying its income streams right now will have enormous long-term effects."

Mr Gaddum said QRS staff, management and the board had all contributed to the demonstrable turnaround in company performance.

"With a great leadership team, our awesome employees, and the board, we're really making strides in achieving our strategic goals of strengthening company resilience; having the right people doing the right things all the time; more work referrals; zero harm in the workplace, and ongoing quality of work."

The company, which employs 98 staff members, is Wairoa's second biggest employer.

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Wairoa Mayor Craig Little said he was pleased with the company's six-month financial results.

"The council and QRS have a great working relationship, which is really important and whilst it is great to have a healthy six months and a good dividend, the biggest dividend for me is the QRS staff and their contribution to Wairoa," Mr Little says.

"This is a fantastic turnaround in such a short period of time and is a reflection of all the hard work and effort put into the company and their operations by the board members, the new chief executive and all the wonderful staff.

"The council is certainly very happy with QRS' financial position and I am sure we can look forward to more positive outcomes like this."

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