Deloitte Fast 50 2018 - Electric Kiwi Southbase Kiwi firms - Deloitte Private
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2018 Deloitte Fast 50 Electric Kiwi Sparking success Southbase Masters lasting growth Kiwi firms Make bread from food
foodies
THE FAST 50
Getting on to the Deloitte Fast
50 index has a sweet taste for
the country’s most innovative
food and beverage producers.
Many of the newbies to the
2018 index are winning
customers with new takes on
the business of keeping people
fed and watered in style.
One of the fastest-growing
companies on the index of
fast-growers is Raglan Coconut
Yoghurt, which posted just over
300 per cent revenue growth
over the past three years.
It’s one of six in the top 20 in
PHOTO: SUPPLIED
the business of luxury and
specialist food and drink.
2 ll Deloit t e Fas t 50 2018
The Yoghurt
Makers
The first-ever batch of its coconut yoghurt
was created by Latesha Randall in her home
kitchen for dairy-intolerant Seb Walter.
It wasn’t perfect, Randall recalls, but it was
good enough that the idea of launching a
business began to ferment in their minds, and
they set to work creating a cultured product.
“It took months before we had something
that was really nice,” Randall said.
Four years later, and Raglan Coconut
Yoghurt exports to Australia, Hong Kong
and Singapore, and has grown to become the
largest employer in the coastal Waikato town.
“weIthad
took months before
something that Founders of the Raglan Coconut Yoghurt
The Snack
was really nice.
”
The company has 24 staff now, and its seven
company, Latesha Randall (Mrs Coconut)
and Seb Walter (Mr Coconut). Makers
flavours of yoghurt are in Countdown and “We had our own business already,” Randall Business acumen that predates the founding niches, and health trends,” Hale said.
New World supermarkets around the country. said. “We had a digital marketing agency called of the company is a key feature of many of the But, he added: “It’s all about execution. You
This wasn’t a case, however, of a couple the Good Agency.” super-fast growing foodie companies. can come up with a niche product, but many
stumbling into self-creating growth story. Good is a word that means a lot to Randall Bill Hale, a partner at Deloitte in Auckland, said do not get past the local farmers’ market.”
PHOTOS: SUPPLIED
The pair were savvy brand and social and Walter. Raglan Coconut Yoghurt is a living each of the Fast 50 food and beverage companies Tom & Luke is another example of a fabulous
marketing experts, with their own marketing wage company. It is involved in a project to had identified high-value product niches, but idea for a food with a niche target market that
agency, which had worked with businesses like clear beaches of plastic. It’s also a sponsor of their founders also possessed business skills. just happened to come to someone with
SuperShuttle and NZ Natural Formulas. permaculture beehives. “They are very much focused on premium business experience.
3 ll Deloit t e Fas t 50 2018
The
The idea met the business acumen during a gym
session in Petone, Wellington.
At the gym session was businessman Richard
Plimmer, a serial food entrepreneur who had a
company on the Deloitte Fast 50 before, Shott
Beverages.
He was being put through his paces by trainer
Tom Dorman, who had invented a healthy snack
Winemakers
bar, which he was selling through a local cafe.
“He had been making and selling these protein Misty Cove Wines won its place on the
bars. I tried one. It was bloody good,” Plimmer Fast 50 index with revenue growth of a shade
recalled. under 700 per cent over the past three years.
It was a moment of serendipity. Plimmer had a Its founder, Andrew Bailey, had built a wine
food manufacturing plant nearby standing idle. distribution business in the Netherlands, and
There wasn’t even much work to do on the decided to use that as a platform to distribute
product. “The quality of the formulation, and the wines he made back home in Marlborough.
ingredients were terrific. It didn’t need very much Seamus Knox, operations director for Misty
tweaking at all,” Plimmer said. Cove, said: “Andrew and a couple of others
But it did need turning into balls. were living in the Netherlands, and started the
Misty Cove founder Andrew Bailey.
The bars weren’t what cafe owners really wanted. company as a distribution company.”
They needed product that felt like it was made on Misty Cove was launched as a brand to
the premises. So out went the pre-wrapped bars, market New Zealand wine in Holland, with its without the pretentiousness traditionally
and an investment in ball-rolling machinery
started a booming business which now turns out
200,000 snack balls a day.
The company’s revenue growth, which was just
sales channel already in place.
Winemaking has been a tough industry in
recent years, with no shortage of competition,
but Misty Cove’s ready-made sales channel
“ We are small.
We don’t have big,
associated with wine.
But something funny has been happening
since Misty Cove launched wine in single-
serve cans.
shy of 780 per cent in the past year, has been
turbo-charged by its conquering of Australia, and
helped it achieve rapid growth, Knox said.
It hadn’t hurt that it’s got champion pinot gris deep pockets like It’s got a following among retirees, who
prefer not to broach a whole bottle.
the United States now beckons. The scale of the
market opportunity is hard to comprehend.
and gruner veltiner wines, but Knox said there
were now so many gold labels and badges on others have. We Ever ready to develop its brands, Knox said
Misty Cove had just begun a social media
have got to be a
“Some of the big retailers would want all our wines in shops, they meant less than they once campaign with “grandmas dressed as
PHOTO: SUPPLIED
production,” Plimmer said. “But you can’t afford to did as buyers were suffering from “medal gangsters” drinking from Misty Cove cans.
”
bit creative.
put all your eggs in one basket.” fatigue”. “We are small. We don’t have big, deep
Instead, Tom & Luke may end up setting up a The image of Misty Cove was crafted for pockets like others have. We have got to be a
snack ball factory in the US. young people. It’s fun-loving, and lively, bit creative,” Knox said.
4 ll Deloit t e Fas t 50 2018
FAST 50
SHAPING PLANET NEW ZEALAND
Which regions do 2018 Fast 50
What does the average
What industries make up the 2018 Fast 50?
companies come from?
2018 Fast 50
company look like?
AGRIBUSINESS 1
466
AUCKLAND & UPPER NORTH ISLAND 19 CONSTRUCTION 7
WELLINGTON & LOWER NORTH ISLAND 11 $12.3M
AVERAGE AVERAGE 3-YEAR
CONSUMER BUSINESS
FINANCIAL SERVICES
HEALTH
2
2
13
CENTRAL NORTH ISLAND 8 REVENUE GROWTH MANUFACTURING 4
PROPERTY SERVICES 2
RECRUITMENT 2
CHRISTCHURCH & UPPER SOUTH ISLAND 8 TECHNOLOGY, MEDIA, TELECOMMUNICATIONS 15
TOURISM 2
DUNEDIN & LOWER SOUTH ISLAND 4
How much do 2018 Fast 50 companies
Fast facts about our 2018 Fast 50 companies expect to grow in the next financial year?
59%
38% 42% 59% 24%
12%
6 48
Will need to raise Are not planning to Identify talent
capital in the next exit the business shortage as a 6%
years to sustain anytime soon key issue
growth
11-50% 51-100% 101-200% 201%+
YEARS OLD STAFF
$491M 1535 175%
CONTRIBUTED NEW JOBS 2018 ENTRY
TO ECONOMY CREATED OVER THRESHOLD
OVER 3 YEARS 3 YEARS
for a minimum of three years, have had Most businesses were forecasting growth of
operating revenue of at least $500,000 in the between 11 per cent and 50 per cent in the
2016 financial year and supply a full set of next financial year, but 12 per cent were more
financial accounts for the past three years. bullish, estimating growth of 201 per cent plus.
Deloitte does not publicly disclose specific Deloitte partner Simon Chapman said this
revenue details of each company and it does year’s growth rate was not the highest in the
not reveal profit. index’s history, but it was up there.
The winning business on this year’s index, Achieving growth of close to 500 per cent
Super revenue Auckland company Electric Kiwi, was a stand
out performer in terms of revenue growth,
posting a 3602 per cent increase - double that
was a “phenomenal achievement” for any
business, he said.
“Your average business doesn’t get anywhere
sweeps Fast 50 of the runner up, Tuatara Structures.
Luke Blincoe, one of the owners of Electric
Kiwi, said its focus on technology meant that it
near that.
“These are the stand out stars.”
There were a lot of New Zealand businesses
John Anthony was able to automate many of the processes with declining revenue and sometimes just
behind retailing electricity so that more of holding revenue steady was an achievement,
effort went into customers. he said. Electric Kiwi co-owner Luke Blincoe
“We have a straight-up, Kiwi way of doing “Clients that I talk to would be happy with said it focuses on “digitally savvy
business, and this along with our empowered 15-20 per cent per annum.” Kiwis” as customers.
typical Deloitte Fast 50 company is
A and passionate team has led to us win awards Managing growth of 3000 per cent, like what
not your average business. for our service – all of that leads to referral and Electric Kiwi achieved, was a real challenge,
Figures show average revenue for the 50 growth,” Blincoe said. particularly when it came to hiring more staff
businesses in this year’s Fast 50 is $12.3 “We don’t do old-fashioned sales like door to with the right skills, he said.
million, growing at a rate of nearly 466 per door selling or any cold calling whatsoever, we “If a company is growing that fast they need
cent over three years. focus on the digitally savvy Kiwis who like to hire quite a few extra people every month.
The data also shows that the higher a what we have to offer.” “It’s hard finding the right people.”
company’s turnover, the faster its revenue The top three factors companies on this Overall Fast 50 finalists were less optimistic
growth-rate is likely to be. year’s index said contributed to revenue about the future, which was a common theme
Those making under $5m had average three- growth, aside from “general growth in sales”, amongst New Zealand companies.
year revenue of 278 per cent, those earning were new regions/markets, new products/ But having low expectations was not
between $5m and $20m over three years grew services and increased marketing. necessarily a bad thing, he said.
revenue on average 559 per cent while those Despite New Zealand being a nation heavily “It helps us to build sustainable businesses in
making more than $20m had average revenue reliant on exporting, only one third of Fast 50 New Zealand.
growth of 769 per cent. companies traded internationally. “If you look overseas there’s more of a boom
The Fast 50 index, now in its 16th year, ranks The average business is six years old with or bust culture.
the top 50 businesses in New Zealand 48 staff. In some environments such as the United
according to their revenue growth over the More than 80 per cent of finalists used States tech space, failure was not seen as a
past three years. personal savings to start their business bad thing, he said. Deloitte partner Simon Chapman said this
Entrants are required to be New Zealand businesses and only about 30 per cent used “Whereas in a smaller economy like year’s growth rate was not the highest in
registered companies, have been in business bank funding. New Zealand it is.” the index’s history, but it was up there.
6 ll Deloit t e Fas t 50 2018
Why businesses want to wear
the Fast 50 badge Rob Stock
dventure experience business
A Verhoeven Group (fitness and lifestyle
Go Orange has made a big splash since it technology), and MajorDomo (tourism).
launched its brand in March. And just one third-timer, Moola, a short-
The Queenstown-based family-owned term, high-interest lender charging interest
business is the creation of a three-way rates ranging from 245 per cent (annualised on
business merger of tourism ventures loans designed to be repaid within 94-183 days
specialising in white water rafting, kayaking, rising to 620.45 per cent on loans of 2-44 days).
cruising in the Milford and Doubtful sounds, But the index is primarily a place for newer
and jet-boating. companies relatively early in their journey of
Now its focus is on getting its name becoming well-known to the public, and wider
better known, including among the business community.
60 per cent of its customers who are Kiwis Emma Hansen, head of marketing at Go
getting out and enjoying their own big, Orange, said: “The last 12 months have been businesses on the index. fastest growers- Electric Kiwi, Tuatara
beautiful backyard. absolutely massive for us.” Shari Carter, a partner at Deloitte in Structures, and Vertex engineers all posting
Part of Go Orange’s strategy to get itself In 2017 Go Orange merged with Kiwi Christchurch, said: “There are always be a lot growth rates of 1000 per cent or more.
noticed was to secure a debut ranking on Discovery and Queenstown Rafting to add of first-timers coming on to the index, but over To have that level of prolonged growth for a
the Deloitte Fast 50 index of rapidly-growing whitewater rafting and ski and track transport the years, we have had a number who number of consecutive years was rare,
companies. packages to its “experience portfolio”, and this reappear for a second, third, fourth, and said Carter.
In total, 41 of the 50 companies on the Fast year, it acquired Thunder Jet and Queenstown even a fifth time.” Successful companies pass through the index
50 for 2018 appear for the first time. water taxi. Securing percentage revenue growth large on their growth journey.
PHOTOS: SUPPLIED
There are also eight second-timers: Blue River Making a bid for the Fast 50 was about enough to secure a place on the Fast 50 is Some do, however, return to the Fast 50,
Dairy (food), Carus Group (property), Roam “putting ourselves out there”, said Hansen. a big ask. Carter said.
Creative (technology), Inde (technology), NZ It is ranked 37 of 50 with revenue growth of This year, it took revenue growth of at least “We do see some come in for two years in a
Health Manufacturing (dietary supplements), 209 per cent, one of only three tourism 175 per cent to win a place, with the three row, and businesses where they will be in for
7 ll Deloit t e Fas t 50 2018
“companies
Successful
pass
through the index
on their growth
journey. Some do,
however, return
to the Fast 50.
”
Shari Carter
one to two years, and then go out. Then It’s flattering to get an invitation to enter. for ourselves,” she said. “Most of us want to work for businesses we
something changes about their business, “For some people it’s just a bit of recognition Some were just very competitive people, think are successful,” Carter said.
and they are back in again,” Carter said. for the hard work they have put in,” Carter said. Research from the Randstad employment
One trigger could be buying another business. Carter said. Businessman Richard Plimmer’s Tom & agency shows Kiwi workers value financial
“Acquisitions are a very legitimate way to Some chose to enter in a bid to create a Luke snack balls business debuted in sixth stability in an employer.
grow a business,” she said. celebration event for boosting staff morale. place this year. Winning a place on the Fast 50 index could
Sometimes businesses take a breather after a “We hear a lot of people saying they just Plimmer said he entered in a bid to secure a also give confidence to customers, and
growth dash, and then dash on again. really wanted a good news story to celebrate higher spot than he managed with a previous suppliers, she said.
There are many reasons business owners with their team because they are the people business of his. Hansen said even before the index was
chose to have a crack at the Fast 50 index, who have made it possible,” Carter said. Shott Beverages secured 49th place in 2011, announced, Go Orange had put its status as a
Carter said. Hansen said that was the primary motivation and also placed in 2010. Deloitte Fast 50 finalist on its email signatures.
Some were shoulder-tapped by Deloitte for Go Orange. Then there are some hard-headed business “It’s something were are happy to take to
partners, who read about them in the press. “I think it is more about internal pride reasons for getting on the index. suppliers and customers,” Hansen said.
8 ll Deloit t e Fas t 50 2018
contract writing, creating magazines and
“custom content” for clients “that have found
themselves in the position of being publishers
but aren’t naturally great content creators”,
Opportunities
he said.
The content categories on The Spinoff also
have sponsors, with Kiwibank supporting its
still abound
business section and Unity Books its book
reviews, for example.
“The numbers we get on our home page have
online
steadily increased as we have become a more
multimedia brand.”
The Spinoff employs 18 staff and Greive was
not under illusions it had a business model that
Tom Pullar-Strecker would necessarily work for the broader
industry, saying it would probably remain a
relatively niche business that might perhaps
pop in and out of the Fast 50.
I t is no coincidence that internet “It is by no means something that has made
businesses often feature among the fastest any of us rich yet, but it has meant we have
growing firms. been able to run a growing media business
If Deloitte ever drew up a “bottom 10,000” during a period when a lot of others are
list of failed firms that never gained traction, declining. I am very proud of how we have run
online startups might also be well-represented. it financially.”
But the ability to scale-up quickly and Greive said he has considered whether the
address a large market meant success could be model might also work in overseas markets
spectacular when entrepreneurs hit on a such as Australia or Singapore.
successful formula to differentiate themselves “In five years I would expect we would have a
online, said Deloitte partner Ian Fay. much larger degree of export earnings,
“To sit here and say it has ‘all been done’ is whether that is selling products overseas or
probably naive.” The Spinoff editor Duncan Grieve. having opened offices elsewhere.
It was not often you would find a media “It will be a lot of hard work to stay in the
PHOTO: DAVID WHITE/FAIRFAX.
business among a list of fast-growing firms, Editor Duncan Greive said The Spinoff, was basically a distraction to the content. Fast 50 but we have accomplished a lot
for example. which had never had outside investment, was “Our founding idea was we would create already.”
But the stars have aligned for online also profitable. great content, some proportion of which – 10 Fay cautioned that the days of some Kiwi
magazine business The Spinoff which has “The Spinoff was founded on the principle to 15 per cent – would be made on behalf of internet businesses being able to expand
debuted in the Deloitte Fast 50 in 23rd that internet advertising was ‘born broken’,” he clients and that would function in the place internationally online without encountering
place with 289 per cent growth over the said. “Where you were aware of it, you hated it, of advertising.” much in the way of red tape could be drawing
past three years. whether it was a pop-up or a pre-roll video, it The Spinoff supplements that income with to a close.
9 ll Deloit t e Fas t 50 2018New Zealand-based internet retailers might Founder Toni Cox said the first full-year
find more overseas governments following contribution of its Auckland store on
New Zealand and Australia in enforcing the Broadway played a significant part in boosting
collection of sales taxes on low-value goods its revenues by 242 per cent over the past three
and digital services that they export direct to years and achieving 32nd place in the Fast 50.
overseas consumers, for example. Cox, a former web developer, started the
The penny did not always drop that these business with just $300 of stock six years ago
“Amazon and Netflix” taxes could apply just as after seeing a gap for supplying beauty
much to Kiwi companies selling overseas as to products that were being touted online by
the likes of the United States internet giants, social media influencers but which traditional
he said. Kiwi retailers had yet to stock.
“If you want to scale up an internet business, “They were promoting products, I wanted to
you can scale to the world, but in scaling to the buy them personally, so I just bought some
world, the level of compliance is greater.” extra to sell, made a website and it grew from
Depending on what line of business firms there.
were in, companies might also need to “Something would blow up online and we
consider labelling requirements and even any would jump on it, and that is still our
advantage because we still are relatively small.”
Cox believed there were still lots of
“business,
If you want to scale up an internet
you can scale to the
opportunities online and the barriers to entry
were “lower than they have ever been”.
“You have got apps like Shopify, which mean
world, but in scaling to the world, you don’t need to have any web development
the level of compliance is greater.
Beauty Bliss founder Toni Cox
” knowledge at all and you can get set up in a
day.”
But, partly because of that, getting taken
seriously by brands was getting harder, she
cautioned.
environmental claims they made when selling “It is really easy to set up a website and start
overseas, he said. selling things, but it is hard to source the
That is not a concern to another Fast 50 product and maintain those supplier
debutant, Wellington-based cosmetics retailer relationships. I think people sometimes take
PHOTO: MONIQUE FORD/STUFF
Beauty Bliss, which had also been profitable those things for granted.
from “day one”. “People sometimes think too much about the
It had no overseas ambitions and had instead website and not about the business behind it,
Beauty Bliss founder Toni Cox said it developed from selling products online that which is what you have really got to work on.
was easier than ever to set up shop previously weren’t readily available in New You need good old-fashioned business skills –
online, but that means old-fashioned Zealand to opening “bricks and mortar” stores the same skills you have always needed to
business skills are as important as ever. in Wellington and Auckland. succeed in business.”
10 ll Deloit t e Fas t 50 2018 ew Zealand’s clean history of cattle disease
N derivatives market is expected to be worth
has boosted business for Auckland serum US$1.92 billion (NZ$2.8b) by 2024.
company Auckland Biosciences, but the country’s Auckland Biosciences also had a cumulative 186
greatest strength could also be its biggest per cent revenue growth over the past three years.
weakness, founder John Chang said. Chang said his five-year-old business had
Chang has had a career spanning more than been growing rapidly and a major part of that
30 years in science, from managing a HIV was due to his young staff.
research laboratory in Australia to becoming The average age of his 18 employees was 27.
an investor in bioscience startups. “They’re fearless and the most tech-savvy in
The company, which was founded in 2013, gathering market intelligence. That coupled
makes big bucks from serums collected from with a very experienced board has been the
slaughtered Kiwi farm animals. These are used success of the company.”
by multinational pharmaceutical companies Auckland Biosciences has partnered with a
for veterinary vaccines. number of meatworks companies to use
“New Zealand is right up there with the rest of slaughtered animals’ blood for its serums.
the world in the biosciences industry,” Chang said. The blood, that would normally go to low value
“Of all the major farm animal diseases, New products like fertilisers or stock feed, is used for
Zealand hasn’t had any one of them. So we sit vaccinations that can prevent bovine diseases.
right at the top of the list of the most preferred Chang said Auckland Biosciences sold its serum to
suppliers in the country.” multi-billion dollar companies across 14 countries,
But this advantage also put the industry at risk if including India, China, Turkey and Russia.
a disease was to break out, Chang said. “We’re spread fairly evenly across those 14
“New Zealand is susceptible to major diseases countries. We don’t want to put all our eggs
because we’ve never had any before. If introduced in one basket, I’m a strong believer of long tail
there’s a danger of it spreading across the country theory and that is spreading the risk to
John Chang is the owner of Auckland very quickly,” he said. various markets.
Biosciences the multimillion dollar “We have to rely on the robustness of MPI “They’re all very important to us, there isn’t one
company that takes blood from [Ministry of Primary Industries] to make sure predominant market.”
animals to make serums and sells it pathogens aren’t introduced to New Zealand.” Long tail marketing refers to the strategy of
overseas to vaccine companies. Chang said the recent Mycoplasma bovis had targeting a large number of niche markets with a
heightened the conversation. product or service.
M. bovis is not classified as a major disease and Chang said he was looking forward to the
Auckland Biosciences leads the is found in cattle in most parts of the world next 12 months for his business.
PHOTOS: JASON DORDAY/STUFF
including Australia. “We’ll be investing another $1.2 million in a
Chang said New Zealand was an attractive new building to set up sterile filtration. The
way in animal serum technology market for overseas healthcare companies.
Two of the largest serum companies in the
world, GE healthcare and Thermo Fisher’s, global
vision there is to value-add further process and
modify and keep as much wealth in New
Zealand as possible.”
Anuja Nadkarni procurement offices are based in New Zealand. Moving into new markets is also on the
The animal blood plasma products and agenda for Auckland Biosciences in 2019.
11 ll Deloit t e Fas t 50 2018“The point of our business is to optimise the
Parkable wants real estate.”
While Litton supported shared transport
models for e-bikes and e-scooters, he said the
fewer car parks market for car parks would always remain.
“It doesn’t matter what your view of the
future is, there’s always going to be people who
Anuja Nadkarni want to own cars and not share them. The pick
up for electric cars and recharging stations is
inevitable,” he said.
According to the report, global smart parking
system market was valued at approximately
iwi parking app Parkable wants less
K US$3 billion (NZ$4b) in 2017 and is expected
parking and more green space in Auckland’s to reach approximately US$9b by 2024.
central business district because of the amount The app launched in mid August 2015 offering Parkable chief executive Toby Litton.
of under used space. 170 parks for the Bledisloe Cup match at Eden Park.
Parkable allows people to make use of Since then parks have been popping up “We think our technology can provide some
redundant space throughout the city, and its around the country. really good value to the land owner, value to
seen the company claim the National Rising
Star Award category on the index.
Parkable chief executive Toby Litton said
Litton said the three-year-old business had
seen growth of 600 per cent in the past year.
The company has partnered with businesses
the cities in terms reducing CBD congestion as
well as with sustainability initiatives and
reducing pollution.”
“massive
We see China as having
challenges but
there was a staggering 80 per cent of under to rent out unused office car parks and also Bike sharing took off in China, last year with also massive opportunities.
used car parks in Auckland. allow car park sharing between staff. dozens of bike-share companies cropping up.
“There’s some horrible inefficiencies in Parkable is looking to scale its business up, But the rapid growth overwhelmed the Tier-one cities are more
building parking design and transport with expansion planned in Australia and China infrastructure with millions of abandoned technologically advanced
designing. If you have 200 car parks but only, soon, Litton said. bikes flooding city streets.
say, 120 spaces are utilised, convert the rest of “We like doing business in Australia because Shared parking spaces had also been than any other market, that
that into green space for the city or usable
office space,” Litton said.
of the cultural and business similarities and
that makes it a really good place for us to dip
growing in China’s big cities, but Litton
said despite competition the market still
bodes really well for us.
”
PHOTO: CHRIS SKELTON / STUFF
“We’re probably the only car parking our toe in and test our ability to scale across promised great opportunity. Parkable chief exec Toby Litton
company in the world that wants less car parks regions,” he said. “We see China as having massive challenges
not more. We want to see people utilise them “Expanding to China seems like an unusual but also massive opportunities. Tier-one cities Tier-one cities include Beijing, Shanghai,
more effectively,” Litton said. move for a Kiwi company, but we see a good are more technologically advanced than any Guangzhou, Shenzhen and Tianjin.
“As a business there is more market than natural fit with the Chinese consumer and our other market, that bodes really well for us.” But Shanghai is the focus for Parkable.
we can ever hope to address, the parking business. We see our tech development being Cities in China are classified by GDP and the Parkable has also doubled its staff to
market is massive.” really well aligned to be picked up in China. cities range from US$350 trillion to US$20b. about 20 in the last 12 months.
12 ll Deloit t e Fas t 50 2018Kiwis deserve better deal
No door-to-door sales, no cold calling,
giving customers free power. Susan Edmunds
New retailer Electric Kiwi, the winner of At our core is a desire to make life better for
this year’s Deloitte Fast 50, is making an Kiwis. We’ve already saved New Zealand
impact on the power sector by turning some of families over $10 million.”
its habits on their head. When it started, Electric Kiwi had two staff
Electric Kiwi has been in the New Zealand working in one room. Now it has 25. Blincoe
market since the end of 2014. said the biggest challenge was allocating
It now has almost 31,000 customers and has enough resources to all the ideas the team had,
added more than 10,000 in the past year. without compromising customer experience.
The retailer promises customers that they It has reported revenue growth of 3602 per
will save money in their first year. Their cent over the past three years.
previous bills are used to track savings and if Blincoe said its focus on technology meant it
they don’t end up better off after 12 months, was able to automate many of the processes
they are given a credit. behind retailing electricity so that more effort
Electric Kiwi also offers a free off-peak “hour could be directed to customers.
of power” each day. Customers nominate the “We have a straight-up, Kiwi way of doing
business, and this has led us to win awards for
Luke Blincoe, chief executive of Electric Kiwi.
hour they would like to not be charged for
power. our service – all of that leads to referral and
Chief executive Luke Blincoe has become a growth. We don’t do old-fashioned sales like our customers, then we believe that we can our industry, as our focus is on customers
well-known and outspoken advocate for door-to-door selling or any cold-calling keep growing at current rates. The market is and what they want. We have no bias to
change in the industry, targeting issues such as whatsoever, we focus on the digitally savvy really interesting at the moment and we see protect the status quo because we don’t own
the lack of uptake of smart meters in some Kiwis who like what we have to offer.” even more opportunity emerging as the any assets like generation units or poles and
PHOTO: CHRIS MCKEEN/STUFF
parts of the country, and the recent soaring Whether its growth trajectory could continue government looks at ways to ensure more wires. All of the incumbent industry players
wholesale prices. would depend on how well it continued to Kiwis can get a fair deal.” have a bias in their commentary about
“Kiwis deserve a better deal on power, the old innovate, he said. The industry is poised for potential disruption, based on which part of the current
incumbents have been making far too much “No one is just going to let us take their regulatory change and technological system they seek to protect. As long as we keep
money from Kiwi families for too long,” he said. customers, so we are focussed on getting disruption. listening to, and delivering for our customers,
“Electric Kiwi is here to keep them honest by better in every respect. If we execute our plans, But Blincoe was not concerned. we are well placed to innovate as opportunities
being more efficient and doing things smarter. continue to innovate, continue to deliver for “We are better placed than most players in present themselves.”
13 ll Deloit t e Fas t 50 2018Southbase
An alternative option to awarding a major to our clients to understand their needs and
contract to a sole company could include wants rather than let communications become
splitting a contract among three or four local diluted by people in the middle.
expands firms, he said.
“The building sector needs to grow up a little
“There are two people in all our contracts
– us and the client. Everyone else is an adviser.
construction and learn to collaborate more. And clients
need to think about using companies which
are going to be around for a long time.
We need to educate clients sometimes. A race
to the bottom to be the cheapest is not
sustainable.
footprint “It means the same company will be able to
carry out any of the necessary maintenance or
fix ups needed down the line,” Henderson said.
“Southbase is not just a project manager.
We’re builders.”
Post-earthquake Christchurch projects have
Chris Hutching “Our industry needs to mature. We have included the bus interchange, Deloitte office
poor, often litigious contracts, and a lot of on Cambridge Tce, the Hagley Park cricket
regulatory changes to deal with.” oval, health precinct buildings, and recently-
The Southbase Construction name speaks One of the big overseas corporations completed new central city library.
Artist’s impression of the new Avonside for itself - born out of the 2011 Christchurch Southbase competes with is Australian-based Education projects have been a significant
Girls’ High School and Shirley Boys’ High earthquake it now has projects throughout CPB Construction which is ultimately owned focus with work currently under way in several
School campus in Christchurch which is New Zealand. by Spanish investors. North Island schools, and at the new Shirley
nearing completion. In a sector strewn with financial casualties, CPB won the design and build contract for Boys/Avonside Girls combined site in east
Southbase stands out as a well capitalised the Waikeria prison, under construction, and is Christchurch.
player without debt, but its also done enough competing against Southbase to win the head Since its establishment five years ago there
to be crowned top of the 2018 Master of contract tender for Christchurch’s Metro Sport have been minor shareholding changes and
Growth Index. facility. The contract is being managed by Gough and Carter have relinquished their
It was set up in 2013 by members of two of government agency Otakaro. directorships in favour of Nicky Carter
PHOTOS: DAVID WALKER/STUFF, GEORGE HEARD/STUFF, SUPPLIED
Christchurch’s wealthiest families – Philip Meanwhile the company is working on several (Philip’s daughter) and Brett Gamble who is
Carter and Ben Gough, who remain
“ The building sector needs to grow up a little
shareholders along with seven others including
managing director Quin Henderson.
If there’s one thing that gets Henderson hot and learn to collaborate more. And clients
under the collar it’s the notion that local
companies don’t have the size or expertise to need to think about using companies which
The distinctive Deloitte Christchurch
carry out major projects.
“When they bring Australian companies in, all
their investment and profit goes overseas. Whereas
are going to be around for a long time.
”
Managing director Quin Henderson
offices built by Southbase. we directly employ local people – builders,
plumbers, window fixers, tilers, you name it. other projects in the main centres, where it chief executive of Gough’s company Tailorspace.
“We need to get away from the idea that has set up offices, directing its 200-odd team Other board members include chairman and
bringing in overseas companies is a panacea. including more than a dozen apprentices. Chapman Tripp partner John Holland, and
They’re not the solution. It’s not looking at “People want a construction partner. We do a former Fulton Hogan managing director
what’s best for New Zealand.” lot of design and build work and talk directly Nick Miller.
14 ll Deloit t e Fas t 50 2018Company founders are encouraged to set
their sails from the outset: either as a startup
that someone else will finish, or a business that
may one day be passed on to their children.
Yet having an exit plan was far from the mind
of Ryan Baker when he co-founded a tourism
booking service called BookIt in the early
2000s.
His only thoughts on the subject were that
tech founders were good at starting things “but
not doing them forever”.
“There’s something in your DNA that likes to Ryan Baker learned some valuable
start something and build them up but you’re skills when exiting the software
probably not the best people to take it to the business he co-founded.
next few stages, and that’s where we got to
with BookIt.” serial entrepreneurs lies in the underrated
Baker started BookIt with his friend Andrew negotiating skills they take away.
Some people start a business Schofield and Dunedin animation “Most of the really interesting businesses we
with an exit in mind, others entrepreneur Ian Taylor. Seven years later, they have in the New Zealand scene tend to be
are loathe to leave it. sold it to Trade Me, forming the basis of its people who are on their third, fourth or fifth
TravelBug business. time trying to do that. For me the exit/
It almost didn’t happen. “We almost weren’t acquisitions story is around what you can learn
acquired because nobody knew we existed,” from it and take into the next experience.”
Exit stage left
Baker said. Dan Hellyer, a partner of Deloitte Private,
“But overall our view has always been that said 20 years ago there were no real precedents
businesses are bought, not sold, so the best for how a company in the technology sector
thing you can do is build a really good should develop, but today there’s much more
It seems strange when starting a business to business, make it something that people can’t
really ignore. A good acquisition is when
support.
“There’s incubators, a whole lot of systems
think about the day you’ll leave it, but many somebody wants to buy your company, not and processes, there’s mentors who’ve built,
PHOTOS: 123RF, SUPPLIED
when you want to sell it.” scaled, sold. There’s always a question of
experts believe it’s vitally important. Catherine Harris Schofield and Baker’s next venture was
Timely, a bookings service for the hair and
whether our market holds us back a little bit
and ... I guess offshore companies have been
beauty industry with a staff of 80. looking at New Zealand as a great place to
The buyout bought them time to think, but start an incubator business that can be
Baker believes the real value of acquisitions for scaled worldwide.”
15 ll Deloit t e Fas t 50 2018FAST 50
MASTER OF GROWTH
Meanwhile, traditional businesses, “which “Maybe the best option is to milk it as long as
are incredibly important to our economy” are they can.”
What does the average
increasingly lacking successors within the Conversely “if the owner has checked out, 2018 Master of Growth
family or management. and poses a risk to the business in terms of look like?
“Often the young people in the business attention and drive to continue it, then you’ve
don’t want it, don’t see as something they’re
striving for.”
obviously got to act a lot quicker, because that
can have a flow-on effect to sale”.
$55.7M
AVERAGE
325%
AVERAGE 5 YEAR
Yet Hellyer said there was no shortage of Generally the best time to sell is when things REVENUE GROWTH
clients. “There’s a great pool of capital out are going well. It doesn’t hurt to look around
there ... but it’s about fit, and a lot of things are for good suitors and think about the impact on
traded behind closed doors and you would the organisation.
never know.” And Hellyer advised businesses to keep their
This mismatch is why Hellyer believes books in order, for speedy due diligence.
New Zealand businesses have to think more “The thing that we always talk to our clients
deeply about their fate. “It’s vitally important, about is, we should design and control this, not
especially when you think of little New have someone turn up at the door with a
Zealand which is built on small-medium chequebook.”
enterprises.” Greg Shanahan, managing director of the
Technology Investment Network, said there
Timing is Everything are always companies that have to sell before
Conventional wisdom is that there are three their innovation gets old or market share dwindles.
types of business owners: the passionate However, he believed there was a wider
founder, the serial entrepreneur, and the debate about whether more Kiwis should
lifestyle founder who wants to create an hold onto their good ideas and take them
income and freedom.
The passionate business owner may neglect
to the world.
“I think the change that needs to happen 19
YEARS OLD
428%
ENTRY THRESHOLD
to get out when they should to maximise the within New Zealand is to give more thought as
FOR TOP 5
company’s value. If it’s a family business, there a country to how we want to encourage a
may be some reluctance to sell. longer-term approach and potentially a multi- COMPANIES IN THIS AWARD
HAVE TO BE IN OPERATION FOR
But for some businesses in a mature market, generation approach to growth of business.
AT LEAST FIVE YEARS, TURNING
Hellyer said the owner might be financially “So that we can have more companies like, say, OVER 5 MILLION DOLLARS OR
better off by staying put. Datacom or Fisher & Paykel Healthcare.” MORE IN THE FIRST YEAR
RECORDED
16 ll Deloit t e Fas t 50 2018In partnership with
2018 Deloitte Fast 50 national winners
Number of
Revenue
Rank Company Region Description Website appearances on
growth
Fast 50 index
1 Electric Kiwi Auckland 3602% Independent digital electricity company electrickiwi.co.nz 1
2 Tuatara Structures Christchurch 1682% Manufacturer of structural steel frame buildings tuatarastructures.com 1
3 Vertex Engineers Central North Island 1144% Multi-discipline engineering firm vertex.co.nz 1
4 Blue River Dairy LP Dunedin 938% Premier producers of sheep milk products blueriverdairy.co.nz 2
5 Cambridge Homes Auckland Auckland 897% Quality home builders cambridgehomes.co.nz 1
6 Tom & Luke Wellington 774% Manufacturers and producers of healthy snacks tomandluke.com 1
7 Misty Cove Wine Group Christchurch 692% Wine producer and exporter mistycovewines.com 1
8 WOOP Auckland 669% Subscription-based meal kit delivery service woop.co.nz 1
9 Cube Contracting Christchurch 621% Project management and construction specialists cubecontracting.co.nz 1
10 Moola Christchurch 557% Digital lending platform Moola.co.nz 3
11 BlackBull Markets Auckland 552% Online trading brokerage blackbullmarkets.com 1
12 Blacks & Urquhart Auckland 545% Suppliers of top quality fasteners blacksfasteners.co.nz 1
13 Ready to Eat Central North Island 457% Producers and retailers of pre-made meal solutions readytoeat.co.nz 1
14 Pushpay Auckland 436% Mobile giving and engagement solution pushpay.com 3
15 ELE Wellington 372% Family-owned recruitment business ele.nz 1
16 Invenco Group Auckland 370% Global provider of self-service payment solutions invenco.com 1
17 Cross Country Rentals Wellington 369% Family-owned rental vehicle company crosscountryrentals.co.nz 1
18 Integration Works Wellington 329% Integration strategists that specialise in advice and delivery integration.works 1
19 Raglan Coconut Yoghurt Central North Island 308% Dairy-free coconut yoghurt raglancoconutyoghurt.co.nz 1
20 TDM Designer Homes Central North Island 305% Conventional and modular home builders tdmhomes.co.nz 1
21 Crescent Consulting Christchurch 293% Canterbury based recruitment agency crescent.co.nz 1
22 Lowe & Co Wellington 290% Residential real estate specialists loweandco.nz 1
23 The Spinoff Auckland 289% New Zealand’s fastest growing online media brand thespinoff.co.nz 1
24 Frogparking Wellington 285% Parking management solutions frogparking.com 1
25 Carus Group Christchurch 279% Property maintenance management carus.co.nz 2
fast50.co.nz Continues >In partnership with
2018 Deloitte Fast 50 national winners
Number of
Revenue
Rank Company Region Description Website appearances on
growth
Fast 50 index
26 Gong Cha Auckland 273% Quality tea and beverage retailer gongcha.co.nz 1
27 Fuel50 Auckland 260% Employee engagement and career pathing platform fuel50.com 1
28 Innocent Packaging Auckland 255% Renewable and sustainable packaging manufacturers innocentpackaging.co.nz 1
29 Firefly Auckland 254% Digital marketing agency fireflysearch.co.nz 1
30 Terraform Earthworks Central North Island 253% Specialists in all aspects of earthworks NA 1
31 Quantum Wellington 246% IT security consultancy for New Zealand business quantumsecurity.co.nz 1
32 Beauty Bliss Wellington 242% Omni-channel cosmetics retailer beautybliss.co.nz 1
33 Roam Creative Auckland 228% Digital product and innovation company weareroam.com 2
34 Nova Health Central North Island 227% Specialist nursing, caregiving and health consultancy novahealth.co.nz 1
35 Night ‘n Day Foodstores Dunedin 224% Convenience foods retailer nightnday.co.nz 1
36 BeeNZ Central North Island 214% Premium New Zealand honey exporter beenz.co.nz 1
37 Go Orange Dunedin 209% New Zealand adventure tourism brand goorange.co.nz 1
38 Inde Christchurch 204% Cloud-first technology solution provider inde.nz 2
39 New Zealand Health Manufacturing Auckland 200% Manufacturer of health products nzhm.co.nz 2
40 ZX Security Wellington 196% IT security consultants zxsecurity.co.nz 1
41 Aurora Insurance Auckland 195% Insurance advice provider for families aurorainsurance.co.nz 1
42 TK Plastering Christchurch 193% Suppliers of cladding, plastering and painting services tkplastering.co.nz 1
43 Auckland BioSciences Auckland 186% Processors and exporters of animal products for the veterinary pharmaceutical industry aucklandbio.com 1
44 Verhoeven Group Central North Island 184% Lifestyle and fitness products wholesaler verhoevengroup.co.nz 2
45 Type 40 Events Auckland 182% Event management services type40.co.nz 1
46 Hypr Innovation Auckland 182% Software improvement support and strategic guidance on technology investments hypr.nz 1
47 Wrestler Wellington 181% Storytelling agency specialising in video, VR and AR wrestler.nz 1
48 WhosOnLocation Wellington 180% Cloud-based people presence solution whosonlocation.com 1
49 MajorDomo Dunedin 178% Specialists in high-end holiday accommodation majordomo.co.nz 2
50 North Drill Auckland 175% Northland based drilling specialists northdrill.co.nz 1
fast50.co.nzIn partnership with
2018 Deloitte Master of Growth Index
Number of
Revenue
Rank Company Region Description Website appearances on
growth
Fast 50 index
1 Southbase Construction Christchurch 745% Commercial construction specialists southbase.co.nz 1
2 Bookme Central North Island 482% Online booking engine for activities and attractions bookme.co.nz 1
3 MIX Auckland 437% Natural beauty product manufacturer mixlimited.co.nz 1
4 New Y Trading Auckland 431% Cross border logistics services qex.co.nz 1
5 Invenco Group Auckland 428% Global provider of self-service payment solutions invenco.com 2
6 Wellington Hospitality Group Wellington 419% Wellington's leading hospitality company whg.co.nz 2
7 EROAD Auckland 415% Electronic and automated fleet management eroad.co.nz 1
8 Antipodes Wellington 384% Scientific organic beauty and skincare antipodesnature.com 1
9 Protempo Auckland 346% Global distributor of consumer electronics protempo.com 2
10 South Pacific Fire Protection Group Dunedin 324% Designers and installers of fire protection systems southpacificfire.co.nz 1
11 Pic's Peanut Butter Wellington 309% Peanut butter products picspeanutbutter.com 1
12 Tuapeka Gold Print Dunedin 306% Wholesale supplier of promotional products tuapeka.co.nz 1
13 Verhoeven Group Central North Island 265% Lifestyle and fitness products wholesaler lifefitness.co.nz 2
14 NIG Nutritionals Auckland 234% Manufacturer and marketer of dairy, nutritional and health products nignutritionals.co.nz 1
15 Straker Translations Auckland 212% Cloud-enabled translation services provider strakertranslations.com 1
16 A1 Homes Otago Southland Dunedin 160% Residential home builder a1homes.co.nz 1
17 GO Healthy New Zealand Auckland 150% Natural health products gohealthy.co.nz 2
18 Real Journeys Group Dunedin 145% Privately owned tourism company realjourneys.co.nz 1
19 Pie Funds Management Auckland 141% Boutique investment manager piefunds.co.nz 1
20 Scott Technology Dunedin 121% Automation solutions and machinery scottautomation.com 1
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