Tait seals $30m bus radio deal in London

Christchurch-based Tait Communications has won a tender with Transport for London to replace the British capital city’s bus radio communications system with a new digital mobile radio system.

The contract is worth about $30 million over several years and was signed in London at an event hosted by New Zealand’s High Commissioner, Sir Jerry Mateparae.

Tait chief executive Garry Diack said the agreement would involve Tait manufacturing and replacing the communications infrastructure for London’s fleet of almost 10,000 buses.

Changing the fleet’s current analogue phones to digital technology will improve reception and permit data gathering on bus movements and other information such as smog across the city.

Diack said it was a strong vote of confidence from one of the world’s most iconic brands, and came after a contested process against major international manufacturers in the technology industry.

The contract comes as Tait managers and directors seek new ways of raising working capital which may involve changing the company structure.

The issues came up at a recent staff meeting where the possibility of selling parts of the company were discussed, which might involve extracting its ownership from a charitable foundation.

The Tait Foundation was established in 2007 after the death of founder Sir Angus Tait.

Its purpose is to hold funds for any charitable educational purposes in New Zealand. Funding has gone to research at University of Canterbury and research within the company.

The recently published accounts reveal revenue of $4.4m but investment expenses of $2.8m, grants disbursed of $376,761, leaving a surplus of $1.6m.

Current assets stand at $70m with total equity $48m after liabilities.