MAKING A COMEBACK B&W instrumentation and Electrical has received orders to the value of R154-million and expects further orders of about R24-million in the near future
Since JSE-listed electrical and instrumentation contractor B&W Instrumentation & Electrical was bought by engineering solutions provider ELB Engineering Services, in April, B&W, has recorded a “phenomenal” turnaround.
“Since the acquisition, which was only finalised on April 22, we have received orders to the value of R154-million and we expect further orders to the value of about R24-million in the near future,” says B&W CEO Brian Harley.
He adds that the company’s ability to take on this work is a result of ELB’s commercial support, which enabled B&W to close off old contracts, settle outstanding debt and consolidate its cash flow, “which it is improving on an ongoing basis”.
“The bottom line is that B&W is once again in the black and operating profitably,” states Harley.
He describes the integration of B&W into the ELB group as a smooth process owing to the “excellent” cooperation between the various management teams and, the strong business culture fit between the two organisations.
“Our hardworking attitude is underpinned by B&W’s ability to continue operating without a hiccup throughout the transition period,” highlights Harley.
He further points out that ELB has a distinct policy of maintaining strong brand names in the market. “B&W is one of the leading brands in the electrical and instrumentation industry in Southern Africa, which will continue to operate as a standalone company”.
Meanwhile, Harley highlights moving machines supplier Conductor Systems and earthing and lightning protection specialist Pontins, which are also part of ELB’s group, as a growth opportunity for B&W.
“Like us, these two companies are leaders in their respective fields and their products have synergies with our offering, which enables us all to make the most of our newfound muscle in being part of the ELB group,” Harley asserts.
He adds that B&W’s ability to work efficiently with Conductor Systems was amply demonstrated by the companies’ joint contribution to ELB’s successful repair of food group Nestlé’s recently fire-damaged factory, in Potchefstroom, in the North West, which was brought back to operation in record time.
“Both Conductor Systems and Pontins complement and supplement B&W’s core business and service offering, which is a distinct advantage to our clients, as we can now offer them a wider range of services throughout the entire project cycle,” says Harley.
He highlights the opportunity to participate in group projects as another major benefit of being part of the ELB group, as this will provide B&W with a work base load for the future.
“B&W has identified and will target projects in the mining, solar and oil and gas sectors in South Africa and Africa. ELB is aiming to soon expand its services into the transmission and distribution sectors,” states Harley.
He further emphasises that the strong inflow of orders since the acquisition bodes well for both the 2015 and 2016 financial years. “The future pipeline of work is healthy across all sectors of the traditional business,” he says.
“B&W has come through a challenging period and owes a great deal to customers, suppliers and staff for sticking with us despite these challenges,” Harley concludes.