Hawley out to clean up internationally

Press, 15 May 1987, Page 10

Hawley out to clean up internationally

MARTIN FREETH

By 1

NZPA business editor

When Hawley Group, Ltd, the international cleaning services and security group, lists on the New Zealand Stock Exchange next week it will be something of a return to its roots.

Hawley’s recent years of rapid growth have been based largely on the contract cleaning of hospitals, an industry pioneered by a former Christchurch firm, Crothall and Company, Ltd.

The British-based Hawley now owns Command Services Corporation, the Australasian market leader in hospital and office cleaning. This firm grew out of Crothall in the 19705.

Command, taken over last year, also has strong activities in food catering, security, and related business services, and it now contributes about 10 per cent of Hawley’s turnover. That turnover has increased more than 30 fold in six years to be about SNZI.47 billion in 1986 after Hawley’s expansion in Britain, the United States and Canada. Total assets are now more than

SNZ2 billion. In New Zealand to promote the listing, Hawley’s chairman, Mr Michael Ashcroft, said yesterday that it was a move in recognition of the significant New Zealand element in the group’s international business. For that reason also, Hawley will list simultaneously in Sydney, and is seeking listing in Montreal, Tokyo, and Frankfurt.

The group’s capitalisation now on the exchanges where it is already listed — London and Bermuda, where the parent company is incorporated — is SNZ2.S billion. Mr Ashcroft estimated only 1 per cent of Hawley’s shares were in New Zealand hands but it hoped to build a market for them in New Zealand among both institutional and private investors. The group has attracted wide interest from sharemarket analysts as a rare addition to New Zealand boards: . a truly international company, not a subsidiary or associate of a local company as most overseas listings in this country are. Hawley may attract in-

terest also from former shareholders in Crothall and Co, listed from 1964 to 1977, when it became Command Services. This was delisted a few weeks ago. Command has entered the Hawley group through the latter’s acquisition of Pritchard Services Group Pic in 1986.

Pritchard had 67 per cent of Command and Hawley has lifted that in 100 per cent ownership. Completion of this led to the Command name being removed from New Zealand exchanges just three weeks weeks ago.. The Crothall family formed the original company in 1940 when it won a contract to clean Christchurch Hospital. According to Hawley executives, that was the first such hospital cleaning by an outside contractor anywhere in the world and the concept extended from there, particularly with Crothall’s expansion across the Tasman and into Britain.

Command now employs more than 15,000 people in Australasia, and in New Zealand claims to be the fifth largest private-sector employer. Companies in

the group in New Zealand include Crothall Group, Securitas, Seekers Communications and caterers, Huntsbury Food Services and Advanced Food Systems.

Of expansion in New Zealand, Mr Ashcroft said the group’s dominance in its existing businesses meant growth was much easier by moving into associated servicing activities. One diversification has been in tourist travel packaging. Hawley would examine a range of businesses the group could extend into in this part of the world, Mr Ashcroft said.

Hawley sees the United States as its primary growth region, staying within the established businesses of hospital and office cleaning, in which markets it rates itself now as number two.

The group would be the largest office cleaner by the end of 1987 through the continued acquisition of smaller regional companies, Mr Ashcroft predicted. Hawley is also big in America’s private security industry, especially in central station alarm monitoring.