Capital injection and debt restructure sparks PSG to take on Qld blue chip projects

AFTER securing a host of blue chip projects in Queensland - including the Brisbane Supreme and District Courts, Lotus Glen Correctional facility, DP World Terminal development at the Port of Brisbane, and the Gold Coast University Hospital - electrical, data and communications services company Pacific Services Group (PSG) has taken on a restructure and a $10 million capital injection from existing investors to chase more top-tier work in Queensland.

 

PSG interim chief executive Peter White said the financial boost would allow a restructuring and recapitalisation of the group so it could focus on further developing its pipeline of projects, while providing greater certainty for its workforce and construction clients. PSG has also reached agreement with financiers to restructure debt.

Mr White said with an annual turnover of more than $300 million, PSG employed more than 1200 people across Australia, including 280 in Queensland. He said it was evident the Queensland construction industry was now emerging from a significant period of challenge.

"This additional investment and restructure of debt is a significant vote of confidence in the company and will enable PSG to strengthen its balance sheet," Mr White said.

"The Queensland and national construction industry has been in contraction for an extended period, but the sector is emerging from a challenging period and this investment makes us well placed to capitalise on the rebound.

"While some of our competitors have not been able to weather the storm, our restructured balance sheet and low debt provides a strong platform to win further work and increase our market share by focusing on top-end projects - good news for our Queensland workforce and the local economy." 

Mr White said part of the company's future growth strategy involved a continued expansion of its involvement in the maintenance and lifecycle of buildings. The company already has some of Australia's largest companies as clients.

"We have recently moved from a manual intensive system and invested in a nationalised IT platform that automates maintenance job requests. This enables our maintenance workforce to be more responsive and give customers immediate updates so they get greater certainty that their needs are being met," Mr White said.

The company operates in a broad range of sectors including public infrastructure, defence, mining, rail, industrial, manufacturing, commercial and marine.

In Queensland, PSG is currently installing railway station electrical infrastructure on the Richland to Darra rail corridor upgrade. Recently, in the landmark $600 million Brisbane Supreme Court and District Court build, the State Government engaged PSG to design, develop and install all electrical systems.

At the $450 million expansion to the Lotus Glen Correctional facility, accommodating 700 inmates, PSG supplied and delivered electrical and communication services, while as part of the $140 million DP World Terminal Development expansion at the Port of Brisbane, PSG conducted supporting electrical work.

PSG also recently installed electrical and communications packages as part of a $1.76 billion state-of-the-art Gold Coast University Hospital infrastructure development.

 

Mr White said part of the reason for its success is that PSG has highly evolved quality assurance and safety systems and is a leader in ecologically sustainable development.

Mr White is due to complete his term as interim CEO of Pacific Services Group on September 9, when newly appointed CEO Jeff Bretz moves into the role. Mr White has been in the CEO's seat since August 2012 and a PSG board statement credited him with having "steered the company through some very difficult trading conditions and overseen the recent successful recapitalisation of the company".

Mr Bretz has extensive construction and electrical industry credentials from his experience with Silcar Pty Ltd, Tyco Australia Pty Ltd and ABB Industries in Australia, Asia and the Middle East.

http://www.psgelectric.com.au/

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