Safety tiles set to make impact

ANDREW GORRIE

SPREADING OUT: Acma Industries director John Bowmar is pondering how to fund a global drive for Kradal, his company's new flooring product.

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Acma Industries is contemplating a stockmarket flotation to fund an international drive for its new flooring product, designed to cut injuries caused by falls among the elderly.

After six years in development, at a cost of more than $1 million, the Upper Hutt manufacturer recently launched Kradal, a floor tile aimed mainly at rest homes.

While the polyurethane tile has a strong top surface to help withstand everyday contact, a rubbery foam underlay cushions the impact of falls.

Acma claims the tiles reduce the shock of falling by at least 65 per cent compared with wooden or concrete floors and by a quarter compared with carpet with underlay.

An ageing population means the potential market for elderly healthcare is growing. The company estimates a 10 per cent share of the forecast market for flooring in new and refurbished rest-home bedrooms over the next five years would be worth more than $900,000 a year in revenue.

Figures from ACC show there were more than 95,000 claims for injuries for falls among people aged 65 and over in the year to June 30, with new and existing claims costing $109.2m in the period.

As well as selling Kradal in its main markets of New Zealand and Australia, director John Bowmar believes there is a market for it internationally, although it was "a product that probably needs a bigger company to take it further" prompting it to seek investment or partnership for expansion.

The company has already had inquiries about the product from as far away as Sweden, seeking a quote for a refurbishment of a rest home.

Mr Bowmar said a public listing was the "extreme option" of several possibilities it was considering for funding an international drive for Kradal.

A standalone website has been established for Kradal, making it easier to hive off that part of the business if Acma chose. "We didn't know whether we would do it that way, but we have done it in such a way that gives us the option, so it's splittable from the rest of the business."

Acma is already holding talks about licensing agreements with two United States companies to sell the product in North America and Mr Bowmar said the company would consider a joint venture with a partner company to help drive the product worldwide.

He claims an ageing population and increased regulation of rest homes meant the product was well timed for launch. "We think it's a good product; the idea came from a need in the market. We haven't come up with an idea and now we're trying to find somewhere to flog it off.

"The public health issue is only starting to be confronted; if we do nothing about falls among the elderly the health system will be swamped over time."

- © Fairfax NZ News