Aotea Group nationwide plans well afoot

Aotea Group of Companies chairman Murray Hughes (right) and Dunedin area manager Paul Parsons....
Aotea Group of Companies chairman Murray Hughes (right) and Dunedin area manager Paul Parsons. Photo by Linda Robertson.
Dunedin-based Aotea Group of Companies is well on its way with its ambitious plans to become the only truly nationwide provider of electrical and security services, chairman Murray Hughes says.

The group, formed in Dunedin in the early 1970s under the name of City Electrical, recently opened its 18th company operating under the Aotea name.

It has electrical and security companies in 13 centres, some centres with two companies.

Turnover for the group had now reached more than $75 million.

The name change to Aotea came in 1980.

Mr Hughes said the company had kept a low profile since the management buyout from the former owner in 1991.

"We have been a company that has tried to stay under the radar, but the time has come. We want to be a truly New Zealand-wide company - a national provider of security and electrical services."

The latest company to operate under the Aotea umbrella of companies was Aotea Bay of Plenty, based in Tauranga.

Tauranga was now one of New Zealand's largest centres, and it made sense to move into that area.

The company also operates in Auckland and Wellington and is planning further expansion in the north, Mr Hughes said.

Mr Hughes and Dunedin area manager Paul Parsons are two of the directors on Aotea Group Holdings, the board that oversees the operation of the group.

Mr Hughes said people often talked about Dunedin's best-kept secret.

"[My] best-kept secret is to identify and surround myself with the best and most capable people."

In some cases, those people became shareholders in the companies in which they worked, another valuable motivation to ensure a successful operation.

"When they come to work, they are coming into a company they own a part of.

"They are coming to their company," he said.

Mr Parsons, the largest shareholder in the Dunedin branch, said having "skin in the game" was an important part of the business.

If a manager had to be contacted about a business matter, the person was more likely to take the issue seriously if his money was at stake.

Asked about how the group identified expansion opportunities, Mr Hughes said he and his team first talked to their suppliers, which were also selling to other "good companies", and tried to identify which personnel would fit the Aotea culture.

"We are looking for people who will fit into our model. There are some good bastards out there," Mr Hughes said.

Sometimes, people approached Aotea wanting to join the company but in only once instance - Aotea Bay of Plenty - had the company bought out an existing operation.

In every other instance, the group had established a new company in each area.

In the 21 years since the management buyout, Aotea had experienced strong growth, he said.

In 1991, there were just 18 staff.

Now, in Dunedin there were 80 staff and across the country 380 worked for the group.

Aotea also had 35 apprentices, including 16 in Dunedin.

Mr Hughes said the company had a philosophy about training its next generation of electricians to replace the old guys when they "dropped off".

Each of the separate companies used the group's management tools and systems, but their daily work was managed from each regional office.

Work for the electricians went from installing a socket for $50 to $1 million contracts at sports stadiums.

Recently, the group had branched out to form a telecommunications division.

The group was responsible for dismantling the floodlights at Carisbrook to install at AMI Stadium in Christchurch.

Mr Parsons said he was responsible for installing the lights at Carisbrook as well as dismantling them and moving them to Christchurch.

He revealed there was a Highlanders flag rolled up in one of the lighting supports.

The company also provided a wide range of electronic security products and services.

"We are really rolling along," Mr Parsons said.

-dene.mackenzie@odt.co.nz

 

 

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