Wairoa’s Quality Roading Services diversifying in downturn

Majority Wairoa District-owned contractor Quality Roading and Services has diversified into the manufacture and installation of an erosion prevention product. Photo / QRS

A Wairoa District Council-owned contractor has revealed it is diversifying its operation while navigating an industry downturn.

Quality Roading and Services (QRS) has expanded into manufacturing and installing Ecoreef, an interlocking module product designed as a coastal erosion solution but also used in roading and under bridges.

The process will use the company’s own raw materials and processed products.

QRS board chairman Guy Gaddum said in a statement it was a vertically integrated approach to business that would shore up the company’s long-term sustainability.

“As well as creating a self-sustaining loop for our own business, we are also able to sell that aggregate, concrete, and Ecoreef to our customers,” Gaddum said.

“By managing the supply chain we can reduce costs, improve our efficiencies, and weather the ups and downs of the infrastructure sector.”

Earlier this week QRS made a presentation to WDC on its financial performance over the past six months.

Revenue of $17.8 million was nearly 30% lower than the $24.9m recorded in the same period last year.

Pre-tax profit was $1m, down from $2.2m for the same period last year.

The company said that its financial performance reflected “the new norm” as it transitioned from the work programmes initiated after Cyclone Gabrielle.

The Ecoreef team led by QRS construction manager Mike Wilson makes the interlocking modules from locally sourced aggregate and concrete. Photo / QRS

“Although the next six months may present challenges, we have confidence in our strong position to seize recent and emerging opportunities,” Gaddum said.

The company board made an interim distribution of $50,000 to WDC to provide financial certainty and support to the district.

QRS chief executive Jeremy Harker said, “Staff remain at the heart of what we do” despite the downturn.

“QRS remains committed to serving the Wairoa community and beyond, ensuring stability for our workforce while positioning us for future opportunities,” Harker said.

Over 2024, QRS returned just over $1.2m to Wairoa via a $1.05m distribution payment to the council and $205,000 in sponsorship of community events and youth initiatives according to its annual report from that year.

QRS has been selected as the supplier for the Te Reinga Bridge rebuild after decommissioning the cyclone-damaged structure nearly two years ago.