Our operational business units including BMD Constructions, BMD Urban, Empower Engineers & Project Managers, JMac Constructions and Urbex each delivered a profit, and despite COVID-19 based forecasts predicting a delivery of earnings 30% below budget expectations, the Queensland Constructions division and BMD Urban delivered strong results. The business’ ability to address COVID-19 related concerns quickly and effectively eliminated potentially negative impacts to profit and cash outcomes.
The Group’s strategic program, DigiLead, delivered key initiatives including the implementation of a new asset management system, automation of the docket receipt and docket matching process, online learning, and the use of artificial intelligence in forecasting construction project management.
An automated payments platform that enables better monitoring of compliance under the many state and territory security payment obligations was also rolled out. With BMD processing and paying approximately 17,000 invoices per month, the new system has provided considerable benefits in the timeliness of reporting and significantly reduced the manual workload associated with ensuring compliance against the varied legislative requirements of each state and territory. The platform also automated the monthly reporting requirements to achieve compliance in line with the obligations of the Australian Building and Construction Commission.
During the 2019-20 financial year, a Procurement division was established to drive operational and commercial efficiencies across the business. Working collaboratively with BMD’s operational business units and external parties, the team undertook reviews across wet hire, dry hire, travel and accommodation, personal protective equipment and corporate wear, stationery suppliers, and labour hire. Empirical data tracking demonstrated that these reviews have supported operational efficiency and generated commercial benefits in the form of lower costs. Moving forward, the Procurement division will focus on reviewing materials and supplies, traffic control, small tools, and plant and equipment.
Development of our people remained a priority, with 20 of our emerging leaders undertaking a 12 month training program designed to equip them with the skills necessary to move into leadership roles. The Group also continued to support employees undertaking undergraduate and postgraduate business-related study programs. BMD remains committed to the professional and personal development of our people to ensure they have the skills required to perform their roles and supports them to obtain the career opportunities they are seeking.
Our Graduate Accountant development program continued, with several of our graduates obtaining necessary experience through appointment to site based accounting roles. This program will continue to ensure our finance teams have the necessary industry knowledge and experience to provide the best support possible for the business.
Increasingly, we are identifying the need to develop the data analysis and technology skills of our people. It is through these skills the business is identifying margin improvements and ensuring a better understanding of project challenges earlier than would otherwise have been the case.
The strategy to grow our Urban business through property development arm, Urbex acquiring land to develop and sell is being financed through both traditional bank lending and nonbank finance partners. We continue to benefit from the support of our financiers in this space, with several land opportunities under construction.
The Group is in a strong position to navigate the challenging business environment, with a high level of work in hand and numerous projects that are performing exceptionally well and forecast to deliver outcomes in excess of our tendered margins. We continue to be supported by our stakeholders, including banks and bond providers, which is a testament to the efforts of our people to drive a focus on performance and ensuring we manage our cash and risk within the business.
