Essentially UXC is divided into three groups – Field Solutions Group, Business Solutions Group and IP Ventures. Even though the magnitude of services and businesses catered for are diverse and wide-ranging, the underlying business principle adopted by Management and the Board is the creation of a growing company with superior returns.
While the formation and growth strategy that underpins UXC makes the company different in many ways, its underlying systems and business processes make it similar to other business services organisations. The differentiator is that with a strong balance sheet UXC has the ability to acquire in order to provide growth, market penetration and unlock value.
In building UXC we have a vision of the type of company we want to fashion. Namely the businesses we acquire will have a service focus; they will fit the existing parameters of our business - utilities or business solutions - deriving much of their income from government, the corporate market or the utilities sector. As a rule of thumb we do not look at companies who cater to the general consumer market or have a retail focus. It is all about knowing our own strengths.
Our approach is to buy businesses with strong potential and to work with their existing management team to develop their synergies within other parts of the Group.
In assessing businesses that come across our radar screen, of primary importance are the answers to the questions: Will the new business fit into the UXC framework? Who are its customers? What is the space in which the company competes? Can we consolidate its activities with other businesses? Strategically we are looking for companies that are “buildable and scaleable”. Deriving synergies from integrating businesses is not our primary objective.
First and foremost we are builders for the long-term. We are only interested in companies that are earnings per share positive on day one. While we may be considered opportunistic, we are not deal driven. It is about finding the right mixture. It does not happen as often as our track record might suggest. With our increasing reputation we can afford to be selective about our acquisitions.
In the simplest form we are hunters of value. We are constantly looking out for new businesses that can fit within UXC either by bringing new services or assisting in increasing market share of an identified sector. While we are by nature outward looking and proactive it is in no one’s interest to destroy the value inherent in the businesses we acquire.
Part of our acquisition ethos is that we do not enter into competitive tenders. We require the businesses we buy to want to join us as much as we want them. UXC is about offering what we think is fair value and will be of benefit to both parties. Moreover unless management and key staff stay, we are not interested. It is our aim to sell them on becoming part of UXC.
Although often well recognised within their industry sector, the businesses that form each of the groups are not household names. That is not our interest. Rather they are good businesses with proven sustainable earnings and have a good niche in a strategic part of the field services or business solutions sectors.