The founder of transportable housing manufacturer Blue Ridge, Alan Mackenzie, is planning rapid expansion of the business after buying it back from short-lived owner Cool or Cosy.
The founder of transportable housing manufacturer Blue Ridge, Alan Mackenzie, is planning rapid expansion of the business after buying it back from short-lived owner Cool or Cosy.
Mr Mackenzie established Blue Ridge in May last year, shortly after leaving the industry’s biggest player Fleetwood.
Six months later he agreed to sell Blue Ridge to listed company Cool or Cosy, to provide stronger financial support for planned growth.
However, with Cool or Cosy battling to make a profit from its home insulation and air conditioning business, Mr Mackenzie agreed to buy back Blue Ridge, nearly 12 months to the day after it was sold.
With a growing order book and substantial experience, Mr Mackenzie said he was not worried about starting again on his own.
He is positioning Blue Ridge as a niche player that can snare contracts from the industry’s big players, which comprise Fleet-wood, recently-floated Nomad Building Solutions and Ausco.
Mr Mackenzie said Blue Ridge generated nearly $4 million in sales in its first nine months of business and was expecting to have at least $12 million in sales this year.
Four recent contracts have put it well on the way to achieving its sales goal.
WorleyParsons, the main contractor on Fortescue Metals Group’s Pilbara iron ore project, has awarded the company contracts for offices and facilities at both the port and mine construction sites.
Precious Metals Australia has contracted Blue Ridge to build accommodation units, and Aspen Group has just placed a second order for park homes for its tourist parks.
Mr Mackenzie said he was evaluating funding options and would consider selling equity in the business or taking on a partner, but had no intention of selling the business a second time.
He added that the banks were very supportive in terms of providing debt finance.
Mr Mackenzie acknowledged that the sudden change of ownership had created some issues, especially as Cool or Cosy had been managing the accounts for Blue Ridge.
As recently as six weeks ago, when Cool or Cosy managing director Mario Di Lallo signed off his annual report, he said the company was planning to continue growing the transport-able accommodation business.
To support its expansion, Blue Ridge recently signed up for a 24,000 square metre yard in Kewdale.
Mr Mackenzie said that while the resources sector would support growth for a couple of years, he was also developing innovative solutions for first-home buyers, retirees, Aboriginal housing and school classrooms.
“We need to take away the old image of transportables,” he said.
“They are no longer the old donga type construction. They can now be finished just as well as an established home.”
