Defence consulting company adds manufacturing to its roster with acquisition of Penguin Composites

When a prominent and pioneering Tasmanian business went into voluntary administration, it was feared it would be the end of the company. But it has now been rescued.

Decem Managing Director Chris Clarke at Penguin Composites. Picture: Simon McGuire.

A Tasmanian business that manufactures products for the Australian Defence Force but was facing with possible closure due to financial trouble has been given a lifeline.

Penguin Composites went into voluntary administration in September but the future for its employees looks brighter after defence consultancy firm, Decem, acquired the North-West company.

“We’ve been looking to make the transition from pure consulting to manufacturing, and then this opportunity came up,” Decem managing director Chris Clarke said.

“It’s a company with a lot of defence work and a really strong reputation in the defence sphere.

“We just felt it was too good an opportunity to pass up.”

Decem Managing Director Chris Clarke at Penguin Composites. Picture: Simon McGuire.

The business is a supplier of advanced composite materials and components for a range of sectors, including defence.

It has recently been providing vehicle sets and spare parts for the Australian Army’s Hawkei armoured car.

Had Penguin Composites closed down, Mr Clarke said it would have been a big blow.

“If we were to let this company go under, it’d be terrible for both the employees and the local community.

“So it was sort of a win-win for us.

“We take on a really strong manufacturing company, and the community retains a really strong workforce and workplace.”

Having existed since 1976, Mr Clarke said the business – which also encompasses the company Islander Campers – had “a really solid reputation with its customer base.”

“But we’ve never seen anything like it where the customer base is so passionate.

“You can have a look around the site and see all these caravans; that is customers that are pushing work on to the business because they know that the business is in trouble.

“Often you would think that with a company in administration would see people run, but the reverse is true.”

Decem Managing Director Chris Clarke at Penguin Composites. Picture: Simon McGuire.

While Penguin Composites went into administration because a major customer owed the company $730,000, Mr Clarke believed that “some poor business practices” led to its downfall.

He said once Decem takes over it would approach the business with a phased approach.

“The first three to six months is just stabilising the business administration; getting the cash flow right and the management of the flow – having a decent cash reserve,” Mr Clarke said.

“And then we sort of see other opportunities in efficiencies of production, particularly around bespoke items.”

Mr Clarke said he would also focus on marketing for Penguin Composites.

“They’ve got a lot of work with army-based contracts but not so much with the navy and air force.

‘I think that’s going to be a key focus for us going forward.”