The Electrical & Mechanical Services Trading Fund saw a steady and satisfactory performance in 2002-03, recording revenue of $3.32 billion and a 13.7% return - despite challenges in the operating environment.

According to the fund's annual report for 2002-03 published today, revenue slipped from the previous year, but still fell within budget. The decrease was due to a combination of factors such as price reductions, which the fund offered to customer departments to help them do more with less.

The trading fund's General Manager, Electrical & Mechanical Services Director Roger Lai, said that despite a difficult operating environment and mounting competitive pressures, the fund's financial performance in 2002-03 was satisfactory and operations continued to improve.

Fund demonstrated commitment during SARS outbreak

Working closely with customer departments, the fund also helped weather the SARS storm and demonstrated reliability, professionalism and total commitment to customer departments and the community during the outbreak.

"I am proud that the trading fund remained true to its mission and values throughout this difficult period," said Mr Lai.

The fund also achieved full "untying" in August 2002, when all customer departments became free to use the electrical and mechanical service provider of their choice. The trading fund now operates in a fully open environment with local and international competition. This was a milestone for the fund, signifying that it had successfully completed its transition phase.

Cost controls and improved productivity key

Mr Lai noted the next challenge was to maintain a high-quality and sustainable operation in the current economic climate.

"This must be done by tighter cost control and productivity improvement, while maintaining a high level of service and excellence for all customers by the most effective deployment of its manpower resources," he said.

The successful rollout of integrated services in the past two years was a milestone development in this direction.

Mr Lai described the strategy as one of solidarity, where staff embrace change and collaborate to deliver customer-focused solutions, to become closer partners with customers.

Fund's growth expected to level off

After a phase of rapid growth in the past few years, it would be unrealistic to expect sustained rapid growth for the trading fund, he added. He anticipated that the fund would be operating at minimal margins from 2003-04 onwards, barring unforeseen circumstances.

"The key would be to make ends meet, while achieving continuous improvement," he said.

The fund's services are provided via six business units that cover special areas of expertise. Many of the specialised areas are vital to the community's safety and well-being.

These include airport and vehicle engineering services, health-sector services, municipal-sector services, project services, general engineering services, and transport, security and central services.