NEWS
NEW CEO
APPOINTED
FOR
HARRAWAYS
After 20 years as chief
executive officer of New
Zealand’s only oat mill,
Dunedin based Harraway
& Sons Limited, Stuart
Hammer has announced
his retirement.
The Company’s
chairperson, Trevor Scott,
says that during this
period, under Stuart’s
sound management and
guidance, Harraways has
experienced substantial
growth together with
manufacturing efficiencies
that have resulted in the
company becoming a
market leader within its
product range.
The board wishes Stuart a
long and happy retirement.
Mr Scott is also pleased to
advise that Henry Hawkins
has been appointed as
the new chief executive
officer of the company.
Henry brings a wealth of
local and international
experience, and knowledge
of the food manufacturing
sector to the company.
Harraways is fortunate to
have him in this role as it
embarks on its continuing
journey of growth,
supplying quality products
to both the local and
export markets.
MERCER GROUP ACQUISITION BEARS
FRUIT IN INTERIM REPORT RESULTS
Christchurch-based Mercer
Group Limited (MGL) is reaping
the rewards of its most recent
acquisition, with the company’s
revenue up by 55% and net profit
up 176%.
The company released its interim
report on February 20, highlighting
significant growth and increased
revenue as a result of the
successful implementation of the
Group’s automation-led strategy
for the six months to December 31,
2019.
Leading the figures was the
company’s revenue, which was
$27.9 million and EBITDA, which
increased to $1.1m for the period.
At the end of 2018, MGL purchased
the chilling and freezing business
and capabilities of Milmeq, a
food processing automation and
engineering company. Since this
acquisition, this business has
secured more than $35m in orders
and generated $10.8m in revenue
for MGL in the six months to
December 31, under its business
H&C Automated Solutions.
H&C Automated Solutions designs
and delivers world-leading
automated systems to the dairy,
cheese, horticulture and meat
sectors globally.
Mercer Group ceo Richard Rookes
says the introduction of Milmeq had
been a driving force in increasing
MGL’s sales.
“Bringing the Milmeq capability into
H&C has been a great move for us
and we’ve been really pleased with
the results.
“Reputationally, the brand was
among the best in the chilling
and freezing industry globally,
so it married up well with H&C’s
automation capabilities.
“It also provides us with further
diversification from a product,
industry and geographical
perspective.”
The acquisition is part of MGL’s
strategy to grow the automation
side of its business and given
revenue in that area is now up by
76%, MGL was pleased with the
outcome, Rookes says.
MGL’s strong performance in the
six-month period continued with
cash flow from operations at $2.6m
inflow, based on the stronger
workflows. This resulted in net
debt reducing to $2.2m. Net profit
increased 176% to $447,000.
MGL’s other business, Mercer
Stainless, faced challenges due to
decreased dairy sector investment
impacting it, with revenues down
26% to $6.6m.
“It has been a difficult time for our
Stainless business, as it has been
for a lot of businesses working in
the dairy sector, but the mediumterm
outlook is looking steady,”
Rookes says.
The Mercer Stainless business
was also undertaking work for the
broader Group, particularly Milmeq,
which was another benefit of the
acquisition, he says.
EBITDA was $1.1m for the half
year, an increase of 82% on the
prior year period. Both the H&C
automation business ($1.245m) and
Mercer Stainless ($378k) generated
positive EBITDA.
Rookes was confident MGL would
maintain its momentum through the
financial year.
“It’s been a long transition period
but we’re in a good position with
workflows through the financial
year.
“Concurrently, we’re actively
looking at opportunities to reduce
being exposed to any one sector or
market.”
During the interim report period,
MGL also appointed a new board
chairman, Trevor Burt.
Burt has previously been a
member of the executive board
of Linde Group, holding positions
with the company across China,
North America and Europe. He
is currently the chairman of New
Zealand Lamb Company North
America and Rua Bioscience, and
is a director of Silver Fern Farms,
Market Gardeners and Landpower
Group. His previous chairman
appointments and directorships
include Ngāi Tahu Holdings,
Lyttleton Port Company, PGG
Wrightson and MainPower.
“Trevor’s contribution has been
really valuable and I’m looking
forward to working with him on the
strategic direction Mercer’s headed
in,” Rookes says.
18 MARCH 2020