Eden driving Central growth

OSBORNE Park-based remedial construction services group Central Systems has moved up a gear in its aggressive growth strategy under new chief Richard Eden, acquiring Bayswater protective coatings specialist Asset Systems for an undisclosed sum.

The deal is the first major acquisition undertaken since Mr Eden took the helm at the start of the year.

Asset Systems provides specialist coatings for structures made of steel, concrete, timber or other materials, which are in rapidly growing demand as the state’s resources boom gathers pace.

A former director of powerhouse Forge Group construction arm Cimeco, Mr Eden said the resources-led boom in both project refurbishment and new developments gave Central an ideal platform for rapid growth.

Originally specialising in remedial services and maintenance to prolong the life of existing projects, particularly those with substantial concrete and steel structures, Central has accelerated its push to also service new project developments under Mr Eden’s guidance.

Mr Eden told WA Business News he was keen to use his experience at Cimeco to drive Central’s growth strategy by building on its existing strengths, only starting from the opposite direction compared to a construction services businesses focused on new projects.

“This business has come from the opposite end of the spectrum, where it started off predominantly as a maintenance business, and the new strategy is to move it more into construction services,” he said.

“But we are still very much geared to that specialised niche market of detailed complex repair-type solutions – there is really only a very small number of businesses in WA that do that.”

Mr Eden said the strategy was already paying dividends with staff numbers trebling to over 120 since the start of the year, and turnover doubling.

“In terms of comparison, this business turned over $12 million last year, and we are hoping to do $30 (million) this financial year, and we are on track for that,” he said.

Mr Eden said Central had been successful in winning contracts both for major new projects, such as the giant Gorgon and Pluto liquefied natural gas projects in the Pilbara, as well as growing its contracts with existing projects, particularly in the Goldfields.

“The gold market for us, particularly on existing plant from a maintenance and remedial perspective, is a very big opportunity for us,” he said.

At the same time, the prospect of increasing labour and materials shortages was also leading some clients to defer new developments in favour of stepping up maintenance of existing assets.

“That’s creating opportunities on that side of the business, so I couldn’t be happier,” Mr Eden said