PRESTIGE CLEANING SERVICES
The business achieved pleasing
results marginally ahead of budget.
Though the market remains competitive,
Prestige Group consolidated its
position as an industry leader
thanks to consistent levels of
service that set our teams apart
from the competition. Results
were underpinned by a series
of successful tenders.
TMS GROUP INDUSTRIAL SERVICES
TMS maintained last year’s
strong continued investment in
equipment and infrastructure.
In three years, it has tripled
its revenue. Several small acquisitions
were concluded to widen the service
offering. TMS is now the preeminent
national cleaning services provider
to the petrochemical industry.
The business plans continued
growth in 2009 while optimising
the return on recent investments.
LAUNDRY SERVICES
The business performed well,
drawing benefit from high hotel
occupancy rates and the trend
to bigger garment rental volumes
as companies respond to demands
for higher health and hygiene
standards in food production
and other sectors. Escalating
costs create a strategic challenge,
however. Laundry input costs
in South Africa will soon be
on par with international levels
yet laundry prices remain depressed.
Margin squeeze has already led
to some industry casualties.
STEINER GROUP
The flagship brand, Steiner
Hygiene turned in acceptable
results, but other contributors
failed to match this level of
performance. Infrastructure spending
was stepped up as the group expanded
its geographic footprint.
BIDSERV INDUSTRIAL PRODUCTS
The team returned excellent
results as the strategy of transforming
the G. Fox business into a national
brand continued to pay off. Factors
driving growth included significant
range extension and the success
of the business’s Other contributors
– Giant Workwear and Clockwork
Clothing – also performed extremely
well.
GREEN SERVICES
TopTurf had another good year,
completing two major golf course
builds – one in Mauritius, the
other in Limpopo. A specialised
golf course unit has been set
up with the mission of recapturing
TopTurf’s former position as
one of known internationally
for landscaping successes at
resorts such as Sun City, but
its unparalleled expertise extends
beyond the resort landscaping
niche, creating opportunities
for strategic expansion. A strong
2009 order book includes contracts
to build golf courses in Morocco.
AVIATION SERVICES
The business established a
strong base in the first three
quarters – the period before
the start of the new super licence
for ground-handling services
at all ACSA airports. Work in
support of the new licence led
to the creation of 2 000 new
jobs. SLAs have been concluded
with 33 airlines. Numerous contracts
were signed immediately prior
to start date as many potential
customers waited for the conclusion
of various legal challenges.
Uncertainty about start-up volumes
created operational challenges,
but our services have now settled
in. The super licence is expected
to drive profit growth in 2009.
BIDRISK SOLUTIONS
Magnum, the guarding
operation and the core
business, completed
a major turnaround
and registered pleasing
results after the dislocation
of the previous year.
Vericon, the security
audit specialists,
also performed well.
Provicom, the electronic
security and surveillance
business, did not meet
expectations.
