PEL boss quits following losses
Written on the 7 October 2009
Listed climate-change aggregator Pacific Environment Limited is looking to bolster its balance sheet this FY after reporting losses of $9.14 million. Its CEO Geoff Masters has left the firm but will stay on as a non executive director. He tells Gold Coast Business News that it has been a tough year.
You attribute losses to two companies that were acquired by PEL last year. Commercial Energy Services (CES) is under a deed of company arrangement after moving out of voluntary administration, while EcoVision has also suffered impairments. Sounds like a tough space for short-term investment?
It seems everyone from employees, creditors and customers are supportive of that company (CES) coming out the other side of what has been a difficult process and time. For the broader PEL Group obviously we would like circumstances to be different.
What it has confirmed however is that the way PEL operates with each company run by its own management teams and company structures they aren’t impacted by a stumbling CES at an operating business unit level. The management teams aren’t side-tracked from running their own business that responsibility-attention goes to people like myself and the board where it should go.
EcoVision is doing very well with pilots with major players under way in Australia and projects we are still in pitching for in the Middle East and of course the ‘let’s get things happening’ approach President Obama has taken around energy efficiency at the grass root level is great news for us. How we harness and follow the right opportunities is the key here.
This technology was born and bred on the Gold Coast by Steve Miller and Rick Maddox and their small team and it never fails to impress all over the world. Choosing the right projects, selecting the right global partners are the real keys to the success of this product.
These investors are not spreading their funds across multiple passive type investments, they are seeking to conduct high touch, high understanding/due diligence of companies such as PEL so they can assess their risk investment profile properly. That’s good for a company like PEL because we have a clear understanding of the markets we operate in today and where bounce in markets could be coming from.
Tell us briefly PEL’s modus operandi re: acquisition?
That of course helps from a competitive position as they are already our clients so building on what we already know is more effective in both terms of cost and risk from our client’s perspective.
How difficult is it to educate brokers to get a handle on what you do?
What are the challenges ahead?
A problem or a huge growth jump in any single PEL-owned business doesn’t become all consuming for the whole organisation. The employees and managers can be sympathetic or excited-proud of another PEL company but they don’t get washed over by another company’s state.
Where to now?