Page 10 - NZPM Annual Report 2017

NZPM GROUP ANNUAL REPORT 2017

It is clear that the successful implementation Plumbing World continues to adopt a culture
of our new computer system positioned the of strong cost control. The overall stronger
company to take advantage of the market performance has allowed investment in
growth. After careful planning, the new system additional sales resource and new investment
went live on 1 April 2016, and while there was in a number of areas to improve and protect
some initial nervousness from customers, it was margin. The level of staff in the network has been
an immediate success. The system made it easier increased to ensure that customers receive a high
for customers to do business with Plumbing World level of service. NZPM expects this investment
and greatly improved operational efficiency such will assist in future growth and make the business
that the growth in sales was accommodated with more resilient to future market changes.
only a modest increase to overall staffing and
operating cost levels. Future system development Metrix continues to be an integral part of the
will enhance operational performance, NZPM portfolio. Metrix continues to achieve
functionality, usability of the trade portal and growth in the high-end consumer market.
branch reporting. The pull through of sales into the Plumbing World
network continues to be supported by ongoing
The small increase in the operating margin staff training, promotions and direct customer
percentage masks the underlying progress to marketing.
improve NZPM’s overall returns. The business
improvement strategies of growing our own brand Aquatherm NZ Limited had a difficult year and
and exclusive branded products, procuring on continues to respond to a number of market
more favourable terms and refining our pricing challenges. Aquatherm appointed a new general
and marketing programmes all contributed to manager to refresh day-to-day management,
increased margins. The impact of these gains is concentrating on rebuilding its reputation, is
were softened by a relatively high portion of refocusing on important customer channels and
the revenue growth being to the lower margin is expanding into complementary product ranges.
commercial customer segment.
Construction Marketing Services Limited (CMS)
Strategically, our approach to margin has continued on its growth path. CMS remains
management remains balancing sustainable a well-managed specification partner to
competitive customer pricing with our procured Plumbing World.
cost. The cohesive approach to investments in
systems and the procurement and category
management functions combined to protect and EXCLUSIVE PRODUCTS
optimise margin. Our suppliers have supported
our efforts to grow and improve the business by The growth in the Metrix and Plumbing World own
responding to market pressures and allowing us brand and exclusive product sales is a central
to improve our competitiveness. Philosophically, factor in managing current and future earnings
NZPM continues to strive to be price competitive as we are able to capture both the import and
and to differentiate ourselves through our service distribution margin.
proposition that demonstrates real value to
our customers, rather than being the cheapest Plumbing World has announced it will launch
supplier in the market. LeVivi as our new fully owned brand from July
2017. The name LeVivi means to revive in both
French and Spanish with the motif in the logo
representing water and moving forward.

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