Innovation and diversification continue to propel PWR

Gold Coast success story PWR Holdings, which makes cooling systems for the fastest vehicles on earth, has revealed its plans for the next year.

IT’S clear shareholders are happy when the managing director talks about the company’s “cracker year” and puts on a spread of his favourite meal – lamb chops – for everyone after the annual general meeting.

PWR Holdings held its AGM at its Ormeau base this morning, and had the enviable task of displaying a sea of green on its balance sheet to its assembled shareholders.

“It’s been a cracker year,” company founder and MD Kees Weel told attendees. “And next year has the makings of an even more cracker year.”

The company drove to a record net profit in FY19 of $14.2 million, 17 per cent higher than the previous period. Revenue overall rose 26.1 per cent to $65.4 million.

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PWR Performance Products, which makes cooling systems for the fastest vehicles on earth, has built a new centre of excellence at Ormeau as it expands its product range. Managing Director Kees Weel in the factory. Picture Glenn Hampson

Mr Weel, a former mechanic and now managing director of the listed company, which develops and builds cooling systems for Formula One and V8 race cars and military vehicles, and has a market capitalisation of $468 million, credited his hard working staff and the “PWR DNA” of “not wanting to lose” for driving the company’s success.

“But it doesn’t mean we will be complacent, I always say we’ve got a lot of work to do today before tomorrow comes.” he said.

Mr Weel said this year’s result, announced in August, was on the back of very strong performance in Europe, with growth up 40 per cent in that market.

Looking to the future, Mr Weel said the company was on track with its strategy to continue to attract and retain top talent, as well as diversifying its products into battery and electronics coolants as well as targeting the aerospace and military industries, which are predominantly in the US.

PWR OPENS NEW CENTRE OF EXCELLENCE

PWR boss Kees Weel with a cooling system at his /ASX-listed company PWR Performance Products at Ormeau, which makes cooling systems for NASCAR and V8 Supercar teams, is branching out into cooling systems for 4WD vehicles. Picture Mike Batterham

“We’re starting to make a mark in this sector, we’re what we call ‘race ready’ for opportunities,” he said.

He said they had secured the services of an American who was incredibly experienced in these two industries, bringing top-level connections to the company.

“We’ve been chasing him for quite awhile,” Mr Weel said. “It’s hard to stand up here and talk about how someone is going to go in a job … we’re quite a demanding company but I’m confident he will be a natural fit.”

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PWR chairman Teresa Handicott said the company continued to “disrupt itself” to continue its growth, with the management of that growth a central pillar of focus for the next two years.

She said planned capital investment in leading-edge manufacturing equipment and new technologies including an additive manufacturing machine, a 3D CT scanner and a vacuum furnace would allow PWR to continue to diversify.

PWR is producing cooling systems for the Ford GT500.

“There has been solid progress being made in categories outside of motorsport,” she said.

“Deliveries under our OEM contracts have commenced with deliveries for the Ford GT500 program of 8000 vehicles underway.

“Micro matrix and cold-plate technologies are also showing encouraging sales in the emerging technologies category.”

Longtime shareholder Geoff Voller asked the board about its future leadership strategy, given the huge role Mr Weel has played in the profile and direction of the company.

Ms Handicott assured the meeting, succession planning was well in hand but would not elaborate.

Mr Voller told the Bulletin he was extremely happy with the investment.

“They really are a dynamic company,” he said. “And you heard Kees, he’s not being cocky when he says there really isn’t a head-to-head competitor to them in the world.”

The company announced a dividend of 11.5 cents per share, which included a special dividend of 3 cents, thanks to a cash balance of $20 million on its books. This is up 58 per cent on the past financial year’s dividend of 7.3 cents per share.

Mr Weel today filed a notice showing he had been granted 61,385 shares, worth $289,737, under the company’s long-term incentive plan. A further 3573 shares under the incentive plan lapsed for failure to meet conditions.

Shares climbed 4¢ in intraday trading to $4.72.