What makes a Clever Company? ...Sticking to the knitting when the going gets tough.

Contract Coatings

Case study

Contract Coatings Ltd. is one of Auckland’s largest surface coatings companies. Established in 1985 as a partnership between current owner and Managing Director Peter Heaphy and Graham Illich, the business grew rapidly through the peak of the 80’s boom. Within a short period of time the company employed 100 staff and was securing prime jobs such as the Aotea Centre and major hotels and apartment blocks being built by leading construction companies including Fletchers, Mainzeal and Watts and Hughes.

After the ‘87 crash, the company emerged leaner, but still very healthy, having rationalised their business with a little help from PricewaterhouseCoopers. More major jobs followed including the Auckland International Airport extension and the Auckland and North Shore District Courts. In the mid 1990s PricewaterhouseCoopers had the right advice and recommended the right software for Contract Coatings to make the switch from a manual to computerised internal accounting system.

After working together for more than 25 years, the time was right in 1997 for Peter and Graham to go their own ways. As Peter explains,
PricewaterhouseCoopers again helped them through a difficult period of change.

"PwC’s David Dorrington calmly steered us through an extended negotiation process, helping us to set the price, terms and conditions for me to buy Graham out of the business. Perhaps the hardest aspect of this period was that as well as being a time of great change it was also a time of growth for the company. I couldn’t afford to lose focus on the day-to-day reality of running the business. David’s best advice at that time was quite simply to ‘stick to the knitting.’ It was good advice. During that two-year period our turnover climbed from 5.5 to 7.5 million. It was only possible because I had complete trust in David to facilitate the transition fairly, rationally and professionally. It took a lot of worry off my mind."

As a result of the buy out, PricewaterhouseCoopers has now helped the company make another ownership transition, this time into a family trust. Peter also plans to call on the firm to help him prepare a business plan in the near future. "Their advice has been very sound and certainly cost effective. I’d have no hesitation in recommending PwC to other businesses of our size."

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