Wilkins and Davies remains busy

Press, 16 July 1983, Page 21

Wilkins and Davies remains busy

PA Auckland Wilkins and Davies Construction Company, Ltd, the Auckland building group which doubled turnover in 1982-83, expects to maintain its high level of activity in the current year. But the chairman, Mr Laurie Southwick, Q.C., says it is difficult to predict beyond 1983-84 as many markets will disappear or become more competitive.

“With this in mind, the company is already taking such steps as it can to secure work which will provide a base workload for the future and in this regard it is comforting to observe that its broad range of construction and management skills, and its ability to move its emphasis from one segment of the market to another, should stand it in good stead. “Overseas, competition from international contractors has increased in Malaysia while the Indonesian economy has been set back by a sharp decrease in oil prices. The company intends to continue its operations in

South-East Asia without any rapid expansion.” Mr Southwick says the sharp increase in turnover (up 100.9 per cent to $91.5 million) was achieved without undue pressure on the company’s finances. “This high level of turnover is expected to continue throughout the current financial year, but beyond that what it might be is less certain, primarily because the first group of major industrial projects will then near completion.” Mr Southwick says significant progress was made on the Marsden Point oil refinery extensions during the year, but he is critical of the publicity the project has received. “The project has received much bad publicity on industrial relations matters during the year but has received little publicity on the positive aspects of the contract.” He savs not only is the project benefiting the contractors but is providing valuable training for many unskilled young people. “The project has en-

couraged the high use of New Zealand resources. This has not been confined to on-site construction, and over all has procured a far higher proportion of structural steel-work and pipework from New Zealand workshops than other major projects. “This has been of substantial benefit to New Zealand workshops, the workforce employed there, and finally to New Zealand’s balance of payments. “It is no exaggeration to state that the experience and increase of skills acquired by New Zealanders as a consequence of their involvement in this project ... must be of lasting benefit to the country as a whole.” As reported, the company increased tax-paid trading profit 117.2 per cent to $2,168,515 for the year ended March 31. Directors are recommending a one-for-seven bonus issue on shares held on August 18 and a final dividend of 14 per cent, making a total of 20 per cent for the year.