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20 Things I Learnt from ISOTeam Ltd’s Management

Source: ISOTeam

ISOTeam Ltd (SGX: 5WF) is an established player in Singapore’s building maintenance and estate upgrading industry. The company has 20 years of experience in providing repairs and redecoration (R&R), and addition and alteration (A&A) services. To-date, it has completed a total of 1,284 R&R projects for public housing (322) and private residences (962).

In Singapore, the company is an exclusive paint applicator for Nippon Paint Singapore and SKK Singapore for the public housing sector. ISOTeam also offers specialist coating and painting (C&P) services and complementary niche services, such as waterproofing, interior design, landscaping, and mechanical and electrical (M&E) works.

Earlier this month, I had the chance to meet the management of ISOTeam to learn more about the company and its growth plans. Here are 20 things I noted (the first 10 can be found here):

11. When asked if the financial year ended 30 June 2017 (FY2017) was a year of integration with the acquisitions of many companies, ISOTeam said that in FY2017, it spent much time to nurture the various businesses acquired. FY2018 onwards will be time to grow the company further.

12. Zara@ISOTeam, which is 51% owned by ISOTeam and is involved in interior fit-out works, does not put out a lot of advertisements, but many customers have been coming in through referrals.

13. ISOTeam is engaged in the installation works for grid-tied solar photovoltaic systems for HDB blocks. The company started off with a contract given by Sunseap Leasing Pte Ltd to install renewable energy systems for 33 blocks of flats in Tampines. ISOTeam was awarded the contract after one of the town councils recommended the company to Sunseap, due to the former’s extensive town council knowledge. ISOTeam did not have prior experience with installing renewable energy systems, but it learnt slowly with Sunseap’s engineers. ISOTeam has since been appointed by Sunseap for the installation of these systems at an additional 150 HDB blocks.

14. ISOTeam is currently in talks with Sunseap to take over the maintenance of solar panels that have already been installed.

15. ISOTeam’s edge comes from its experience, skills, holistic solutions it provides to its clients, and its focus on sustainability. ISOTeam has transitioned from a service provider to a solutions provider. The introduction of SG Bike, a bike sharing scheme, is a bid to offer a green transportation option for Singaporeans.

16. ISOTeam will be providing an energy management system under its M&E arm, which has been sold off partially to Japan’s Taisei Oncho Co Ltd (TOC) to form a joint venture. The new service is expected to begin in the middle of this year. When asked how ISOTeam got to know TOC, Anthony Koh, ISOTeam’s CEO, said that “TOC knocked on ISOTeam’s door” two years ago. He added that TOC was hospitable when ISOTeam’s management visited them in Japan and that they are a sincere partner. There would potentially be other spillover benefits from ISOTeam’s linkup with TOC.

17. ISOTeam is looking to launch an organic eco-product, called Cockroaches & Odour Remover (CnO), to eliminate cockroaches. The product, which was successful in its trials at the Tampines town council, is waiting for a licence from the National Environment Agency. The product, which was developed by a South African scientist, has great potential for both public and commercial use. ISOTeam believes the product even has the potential to be brought to the World Health Organization-level.

18. The group aims to be the best and preferred provider of complete solutions for the built environment in Singapore. Five years from now, it hopes to be “transformed” and “integrated”.

19. In terms of culture, Anthony said there is a family-like atmosphere in his company even though none of them are related. He believes in internal promotion; the group’s general manager and chief financial officer rose up the ranks from the executive level.

20. ISOTeam has very low staff turnover. For top and middle management, staff turnover is around 2-3%. Those project managers who resign usually end up setting up their own company and become ISOTeam’s subcontractor or supplier.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P owns shares in ISOTeam Ltd.