The Distinction - Omni Group of Companies (TSX: GD), Moving Forward through 2008
With the most significant transaction in the history of the Canadian janitorial and facility services industries behind us, we now look to move forward in a disciplined approach to growing and developing our companies to their next stage of success. As two established leaders within the industry Distinction and Omni, had the benefit of choosing this "partnership", and each other as a result of knowing and understanding our markets, our clients' service requirements, and more broadly, some of the future trends of our industry.
Our direction forward is predicated upon our group leveraging an established national infrastructure, with capable and competent service companies. With the transaction settling in on several fronts, its business as usual for Groupe Distinction Inc., and it's family of companies. Perhaps most compelling, is this transaction represents the "bringing together" of credible and proven companies, with a shared vision of further developing our geographic and service platforms, our capabilities and best practices, while leading and changing the domestic industry landscape.
This vision starts now, as we have identified several key transitional priorities over the next few months. Where today we are poised with $220MM + in revenue, the future looks exceptionally opportunistic and intriguing with invigorating challenge. All of these elements are to be expected in robust and emerging markets. The Canadian janitorial and related facility services industry represents meaningful opportunity across several different segments of environments, each requiring credible, capable service partners. Characteristically, this is predominantly low capex required business, with an emphasis on consistent, reliable labour, effective supervision, and a solid holistic understanding of the clients' environmental, sanitation and facility service needs.
To this end, we have commenced the transition with the identification of both short term, mid term and long term transitional initiatives and strategies. Our goal for the next six months, through to the end of this year, is to deliver the group a soft landing together as a family of companies. By this we mean well informed, clear on goals and objectives and motivated. In addition, these next several months represent an opportunity to look into our stable of companies and garner best practices and systems to weave throughout our platforms, based on both a common sense and strategic understanding of our business. Behind this notion, it is business as usual for us all and important we remain disciplined and focused on this; as well as our need to operate and prosper while we move through this transition.
Perhaps now more than ever as a publicly traded company (TSX: GD) driven by, and focused on shareholder and stock value, our discipline toward cost control takes on more prevalence. It is a key to our group success. It is best if our collective focus remains constant on this issue, as well as growing our top line and maintaining client service satisfaction. At the same time we recognize we shall endeavour to develop our companies in other meaningful areas. From a high level these potential areas of our internal development include staff learning and development, environmental stewardship, other aspects of corporate and social responsibility, quality improvement, key performance indicators, as well as detailed monthly financial review. This list represents those potential elements we shall explore and review for the purpose of our improvement as a group, upon completion of our key three or four 2008 transitional priorities.
In support of this financial focus, is another priority over the coming months. One of the few synergies with this transaction is what we call "the low hanging fruit". Through to the end of the year, but starting immediately, there will be a keen commitment to how we as a group, procure and acquire our goods and services. Given our critical mass and consolidated buying power we will develop and execute initiatives that will deliver savings and efficiencies on insurance, group benefits, paper product, chemicals and equipment just to name a few. It will be predominantly about savings for the entire buying group. The notion is and should be, save level of quality or better, for our goods and services, with the benefit of lower pricing models. For our group of companies, this is a key priority for 2008. With the priorities of our operations focused on cost control, growing the business and maintaining client service satisfaction.
Another opportunity in support of the group transition, is found within two current markets our groups share, geographically. These are Ottawa and Greater Toronto. Through consistent staff and client engagement, we have been able to commence the consolidation of our offices and have integrated the Distinction business and staff into existing Omni branches, in both Ottawa and Greater Toronto. Where strategically appropriate, we look to identify other suitable rationale.
Another priority over the coming months is to look at our sales, marketing and business development reporting requirements internally, and develop and implement a reporting protocol on business gained, business lost, business at risk, as well as opportunities that remain current. From this type of approach we can garner invaluable information that shall guide us in terms of strategic development and help guide us as a public company with multiple stakeholders. Related to this process, however separate, we shall engage in preliminary feasibility discussion around CRM, EMS and related platforms key to all aspects of reporting internally and externally, based on our priorities.
For any inquiries or additional information on the Distinction-Omni Group of Companies, we are listed on the TSX: GD, or contact the following:
Claude Bigras
CEO, Groupe Distinction Inc.
claude@distinction.ca
Neil Lathangue
COO, Groupe Distinction Inc.
CEO, Omni Facility Services Canada
neil.lathangue@omnifacility.ca