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Growth Initiatives
» GCS continues to build its position through
a mix of organic and acquisitive growth by
reviewing new opportunities that have the
potential to broaden the range of products
and services and establish a presence in
new geographical markets.
GCS strategy has been to create a construction services company using two key components of growing the company both
organically and through acquisition. The aim is to expand the Group's geographic footprint and build upon the existing range of
products and services.s.During the year, GCS has significantly advanced this strategy through a number of initiatives.
In the first half of 2008, GCS acquired two businesses in the construction services sector: Bayswater Scaffold Hire and
Budget Portables.
In the second half of 2008, the company acquired two Western Australian concrete contracting businesses, Newave Contracting
Pty Ltd and Blueline Contracting Pty Ltd. Newave and Blueline are involved in the supply and installation of concrete
and related labour services, providing GCS with a substantial boost to its presence and capability in the West Australian
construction sector.
In January, the Group made a strategic move into WA's booming North West with the launch of a new business division,
GCS Northwest Pty Ltd.
GCS Northwest is located in Karratha, providing greater exposure to the opportunities in the mining sector. The new business
division is already securing significant projects in Karratha and surrounding areas.
Post balance date (effective 1 July 2008) GCS expanded into the South West of Western Australia through the acquisition of a
75% interest in hire and sales provider Coastal Hire Pty Ltd for $4.5 million. The purchase was debt funded with the balance of
25% to be acquired over the next two years.
Coastal has branches in Bunbury, Busselton, Dunsborough and Margaret River providing GCS with a fantastic entry into the high
growth, South West region of Western Australia. The acquisition also brings new product lines to the Group including temporary
fencing and general plant hire.
Also post balance date, the Group launched a new plant hire business division in Perth.
Operating out of existing premises in Bassendean, GCS Hire will offer general plant hire and temporary fencing to a diverse
customer base across the Perth metropolitan market.
With the addition of these latest assets, GCS now has operations throughout the South West region of WA, Northern WA and
across the metropolitan Perth market.
Continuing the Strategy
GCS will continue to build its position in the Western Australian market through a mix of organic and acquisitive growth.
The Group will review new opportunities in the coming year that have the potential to broaden the range of products and services
and establish a presence in new geographical markets, while managing the capital structure effectively to fund future growth.
14 GCS Limited - 2008 Annual Report
Sustainability
» The Group is currently seeking certification
in Safety Management systems to Australian
Standards AS/NZS 4801.
Occupational Health and Safety
At GCS, we consider Health and Safety an essential priority in conducting our business. The health, safety and well-being of our
employees is of utmost importance and, as a company, we will continually work to ensure all employees also regard this as an
essential priority.
GCS has a practical and effective Safety Management System which is used to both direct and assist staff in working safely in
accordance with the Group's safety procedures and legislative requirements.
The Group is currently seeking certification in Safety Management systems to Australian Standards AS/NZS 4801.
We believe that the cooperation of all employees is essential in achieving a high standard of accident prevention. We empower
our staff to continually improve and spread the safety message by ensuring they themselves work safely and in accordance with
the Company's safety procedures and legislative requirements.
Environment
GCS Group's environmental policy reflects the company's recognition of the environment as a major priority and ensures that
environmental issues and risks are central to all strategic planning processes.
GCS continues to foster a strong environmental ethic amongst its workforce through staff inductions and training programs.
GCS believes it is everybody's responsibility to look after the environment we work in and to take ownership of working
procedures that ensure we meet our objectives.
GCS Group has recently achieved Chain of Custody Certification to distribute Plywood and LVL timber, which is green star rated
and harvested from forests that meet stringent environmental social and economic standards.
This will enable GCS to be a retailer of specific eco-friendly products, allowing further expansion of its market initially within
Western Australia.
GCS continues to look for innovative ways to improve industry accepted environmental management standards.
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