Bright future in store for Chch's Screen Sign Arts
The Press
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Christchurch firm Screen Sign Arts (SSA) specialises in products to illuminate the money-spinning parts of pubs and clubs to help light up branding for drinks like Pepsi.
Managing director Richard Hunter said SSA was pushing into North America and Europe via a relationship with Alumasc Dispense, which specialises in making beer taps or fonts for licensed venues.
By marrying its advanced lighting technology to electricity-transmission "at a distance", SSA allows safe illumination of signs in wet areas such as a working bar.
The agreement with Alumasc over a six-year period guaranteed minimum revenues to SSA of $12 million for that time, with Alumasc able to approach potential clients like Diageo the largest multinational beer, wine and spirits company in the world, with brands like Guinness and Johnnie Walker.
"What we've done is given exclusivity for our products to Alumasc ... they have a very large dispense division. I need them (as) foot soldiers because I couldn't afford to keep going up there doing presentations and losing critical mass (at home)," Hunter said.
An initial quote to provide 680 oval Beck's beer labels for uses including the front of tap fonts, had grown to 27,000 each of those worth $25.
SSA uses high performance edge lighting systems based on thin LEDs (light-emitting diodes), that operate at cool temperatures to brighten everything from the beer taps to casino slot machines.
Owner Richard Hunter and his team have developed specialist technology, based on low voltage power, over the last six years and patented that work.
Apart from the agreement with Alumasc, SSA was working with Pepsico in Asia Pacific. SSA had been asked to do a demonstration with Pepsico's preferred dispense manufacturer IMI Cornelius Australia. "We've quoted a job we're yet to hear on which is a (Pepsi vending machine) retrofit," he said.
SSA's lighting system was much less likely to break than the existing fluorescent tubes, often damaged when the machines were refilled.
The company is 90 per cent-owned by Hunter and his wife. The other 10% is owned by a group overseen by Roger Milsom of Black Peak Holdings.
Hunter bought into 35-year-old Screen Sign Arts about 17 years ago when it was based mainly around screen printing, which remains a significant part of the company.
There was the potential to increase revenues to the tens of millions, from the targeted $3m in the year to March 31, 2008, he said.
Hunter estimates the company has spent $4.5m in the last 14 years on research and development and the associated travel. The company had gone through tough times and a sale and lease-back of a Gasson Street property allowed extra working capital to be raised.
SSA has another plastic moulding division working with firms like Fisher and Paykel Appliances to create the signage, including the electronic buttons for products like dishwashers.
"It looks to be heading towards $1m (of revenues) a year," Hunter said.
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