Yesterday, the Waimate District Council announced it had awarded its three-year roading contract to Fulton Hogan for $4.9 million, work that had been carried out by Whitestone Contracting for the past three years.
In March, the Waitaki council awarded its three-year roading contract from July 1 to Southland-based SouthRoads Ltd for $9.3 million, a contract its own company, Whitestone, had held since 1991.
Despite the loss of both contracts, Waitaki Mayor Alex Familton remained confident about the council-owned company and said it remained a strong, viable operation.
"We are seeing Whitestone realigning itself in a very positive way, seeking out exciting new possibilities," he said when contacted.
Those possibilities offered opportunities to retain staff, mitigating against possible job losses.
Waimate District Council roading assets manager Rob Moffat said Fulton Hogan would take over the contract from Whitestone for three years from July 1 after four tenders ranging from $4.9 million to $7.9 million were considered at a council meeting yesterday.
Fulton Hogan was an experienced roading contractor with a proven track record and was selected after following the statutory tender process, he said.
Whitestone chairman of directors John Walker and chief executive officer Glenn Campbell were not in Oamaru yesterday and could into be contacted for comment.
At the time it was announced it lost the Waitaki contract from July 1, Mr Walker said the company was in a fiercely competitive industry. The immediate focus was to work with affected staff and follow up on redeployment opportunities within the organisation.
The company had significant forward workload in numerous areas, including Macraes, Waianakarua and Reidston, and recently set up a branch in Christchurch to assist with infrastructure repairs in the Canterbury region.
In addition, it was investigating new technologies which would create opportunities for the company.
The loss of both contracts came after a positive start to this financial year, the company in its report for the first six months showing a significant improvement in fortunes over the last financial year.
It recorded at the end of December last year an interim profit of $423,280 before tax, subvention payments and donations, compared with a $50,978 loss in the same six months of the previous financial year and a profit of $75,415 for all 12 months of 2010-11Whitestone had 149 full-time equivalent employees in December. In the 2010-11 financial year, its turnover was almost $21 million.
