SH2 safety work helps QRS reach record $1.1m profit
Work on a series of State Highway 2 government safety contracts has helped a Wairoa roading company post a record ?$1.1 million profit.
In a statement on civil construction and roading company Quality Roading and Services’ website, board chairman Guy Gaddum said with gross revenue at $24.3m for the financial year ending June 2019, the after-tax profit of $1,129,619 reflected a 430 percent increase in profitability on the previous year.
“This record is an important milestone in our journey, and reflects a successful rebuilding and refocusing of the business,” said Mr Gaddum.
The profit meant QRS returned a $350,000 dividend to its owner, and sole shareholder, Wairoa District Council (WDC) — the highest dividend paid since 2006.
“We’re proud of all the QRS team,” Mr Gaddum said.
“By carrying out the day-to-day operations needed to achieve the company’s goals, their continued efforts have helped the company become what it is today.
“QRS’s vision is to become a preferred regional employer, so our focus is on empowering employees to take ownership of achieving QRS’s and their own development goals.”
Company chief executive Nigel Pollock told The Gisborne Herald QRS’s profitability was driven in the main part by two New Zealand Transport Agency contracts held since 2018 — Safe Roads and Boost 2.
“The Boost 2 contract stretched from Matawai down through to just north of Napier, and out towards Taupo on State Highway 5.
“While only a small portion of that $11m contract included improvements to state highways near Gisborne, the work helped make regional state highways safer for local road users through a range of low-cost safety improvements, including rumble strips, improved signage and barriers, and road shoulder widening.
“While the Boost 2 contract was a one-off project, QRS was able to sub-contract much of the work to local project management, road construction, civil construction, and traffic control companies.
“Those strengthened relationships mean QRS looks forward to working in the Gisborne region again.”