Baycorp Advantage plays hardball

By Christine Nikiel

Friday 15th March 2002

KEITH McLAUGHLIN: We don't mind a good scrap

Newly merged Baycorp Advantage is fighting to create a profile in Australia but its chief executive is not afraid to create a scene to get noticed.

"We're not afraid of a good scrap with a competitor," managing director Keith McLaughlin said.

"Most Australians don't know who we are, and [Baycorp] had a historically low profile there. That's something we'll definitely work on." He said the company was keen to elbow its way to the front of Australia's credit-reporting market.

While last year's merger between Baycorp and Australia's Data Advantage gave the firm a piggyback to Australia, Mr McLaughlin admitted the company profile needed a major boost.

The merged company's advantage was in the large amount of credit reporting services it offered all in one, Mr McLaughlin said.

The firm's recent financial result attracted minimal attention from the Australian press but he was not worried.

Customers knew the company well. The focus now was to get out and talk to people, the media and generally be "extremely available."

Mr McLaughlin dismissed claims the company was neglecting its Kiwi clients. Major growth over the next few years would be in Australia because it was a less mature market, but New Zealand was definitely not forgotten, he said. The chief executive makes a trip back to New Zealand each month.

He said the feeling from shareholders was the merger had been successful and people had recognised the company had been transparent all the way through, he said.

Merger talks between Baycorp and Data Advantage began in 1999, with an exhaustive process of talks and share buyouts continuing until last year when Baycorp bought 58% of Data Advantage.

Interim results released last week showed all the company's business units had recorded double-digit growth, the standout performer being the receivables management business where revenue increased 22%.

The merger was Baycorp's second Australian venture. The first failed after the company was hit by the 1987 sharemarket crash, causing a $19 million debt writeoff and a quick trip back home.

The company's growth strategy will now focus more on getting a foot in the door than making acquisitions.

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