Does using the Capex® system really save time and add value?
Read what a few successful clients with 10 years continuous experience using Capex® say:
We adopted Capex as our capital management infrastructure in September 2000 and use it exclusively. This system certainly saves time and increases confidence levels in relation to capital expenditure programmes – Mark Woodward, former Commercial Manager, Winstone Aggregates (a division of Fletcher Building Group), Auckland, New Zealand. Current commercial manager Gavin Laidlaw is a Capex user (as at July 2010).

Our company implemented the Capex Stratagio application in 1999. This is very useful software and it continues to form a key part of our capital management system – to the present day– Stephen Gray, Chief Financial Officer, Port of Tauranga Ltd, Tauranga, New Zealand. (Port of Tauranga has consistently been the leading performer on the NZX for the past 15 years).

Capex enables us to consistently evaluate capex proposals using a robust, structured system that I have complete confidence in – Rodger Griffiths, Westpower Asset Manager, Electronet Services Ltd, Greymouth, New Zealand.

The Capex programme has enabled a consistent model and framework to be used for all projects, avoiding use of a mixture of spreadsheets with potentially different assumptions. Using Capex® we quickly produce evaluations with a model that assures us the correct results have been obtained – Gary Smith, former Financial Controller, Port of Napier Ltd, Napier, New Zealand.

A recent corporate client comments: Capex® software helps us to quickly put together business cases that are consistent and prompts us to think deeper and wider about the justification issues – Tracey Mitchell, Chief Financial Officer, Buller Electricity Ltd, Westport, New Zealand.
Feedback from other clients since Capex’s launch 10 years ago :

Is it easy to use ?

SouthPort has used the stratagio application since August 2012. This system saves us a lot of time and helps ensure that our capital resources are allocated to best effect– Nigel Gear, Commercial Manager, South Port NZ Ltd, Bluff, NZ.

Capex® software is a very good tool for managing capital expenditure programmes. It saves us a lot of time – Jim Hawker, former Finance Controller, Naylor Love Ltd, Dunedin, New Zealand.

Our company found good merit in using the Capex programme to make robust evaluation of leasing assets. I fInd it easy to use – Lyle Tresadern, former Finance Manager, Goodtime Foods Ltd, Napier.

This software shows managers how to develop business cases for themselves. There are few screens, making it easy to use – Bruno Peterson, Finance and Administration Manager, NorthPower Ltd, Whangarei.

Capex® has very useful templates and checklists. The screen layouts are easy to follow. Lots of tools that address matters we had not thought of before but really do add value – Keith Duncan, former company secretary, NZ Light Leathers Ltd, Timaru.

Using Capex it is easy to compare the economics of lease or buy and I find it user friendly – Bill McLoughlin, former Plant Accountant, McCain Foods Ltd.

Capex® has management procedures we can access right where we need them. The training videos are really good because they simply explain how to use the programme – Stephen Atkinson, former Financial Controller, NDA Engineering Ltd, Hamilton.
Saves lots of spreadsheet building because it covers lots of multiple applications, like buy-versus-lease, and from valuing a business through to optimising replacement cycles of capital assets – Gary Breakspeare, former Accounting Manager, Network Tasman Ltd, Richmond

Capex helps us get it right first time when putting capex proposals together. It has many tools to add value to an important process – Greg Thomas, former Finance Manager, Aotearoa Seafoods Ltd, Blenheim.

Capex®’s many valuable aids have helped this Group best manage its capital resources – Simon Perry, Chief Executive, Perry Group Ltd, Hamilton.

Capex Systems software helps us with strategic planning and priority setting … a really useful tool for identifying profitable capital investment opportunities – Jon Nichols, Financial Accountant, Hawkes Bay Network, Hastings.
The structured, disciplined approach promoted by the Capex programme is warranted in view of the importance of making decisions that add value to our company – Colin Boocock, former CFO, Port of Tauranga Ltd, Mount Maunganui.

Capex software will enable this company to gain better returns from capital investments. I commend the programme’s consistent approach to reinforcing an important management process – Gavin Hoggard, former Manager/Director, Alpha Scientific Ltd, Hamilton.
Feed back from consultancy clients we helped with capital management procedures prior to developing Capex® software – and including this content in the programme :

Capex Systems Ltd were contracted to develop management procedures for capital expenditure and purchasing. Management and the Board are very pleased with the outcome of this work. It adds considerable value – Theo Koenders, former Group Manager – Finance and Business, Northland Health Ltd, Whangarei.

Capital expenditure management systems developed by Capex Systems have proved very effective in maximising health care delivery from our capital programme – Peter Goldup, former Chief Executive, Wanganui District Health Board, Wanganui.

Capex Systems Ltd assisted us with our capital expenditure justifications. Results well exceeded my expectations … they developed an initiative which will have long term benefits - Anthony Bayne, former Financial Controller, Tarawhiti Healthcare, Gisborne.
A large company asked us to review their business case for having invested $69million in new manufacturing facilities. Using their own in-house financial model spreadsheet they had calculated a net present value (NPV) of $20million. We uncovered fundamental errors in their assessment, demonstrating the NPV was really $0.5million at best. We also showed how Capex® with its numerous prompts and warnings could have avoided this expensive mis-investment.

A public health provider planned to lease back their vehicle fleet and received proposals from fleet leasing firms. They asked us to look at their business case for leasing which showed a net present value (NPV) cost advantage of $184,000. Using Capex software we showed that, on the contrary, the net advantage was actually $63,000 in favour of ownership – a $247,000 difference. The reason? The Capex® error messages showed that cash flows should not have been discounted at the weighted average cost of capital and that year-end discount factors had also been wrongly applied.

A service sector client proposed to invest $18million in efficiency improvement with an NPV target of $7.4million. Testing the plan’s robustness using the Capex® software as a tool they found the gain substantially overstated. This was because the supply contract could be renegotiated without committing capital and there were overlapping savings with other planned capex projects. Such “soul searching” led them to realise there was a much more cost effective project alternative – with direct savings of about $4.9million.

A power network company’s Operations Manager proposed spending $75,684 on a thermal imaging camera for condition monitoring. Importantly Capex® provides a menu of links to relevant websites. We explained how accessing one such site would allow the asset to be sourced for just $US5,500 ($NZ7,800) with an equivalent two-year warranty and from an ISO9000 accredited supplier with a proven track record. Not big dollars but in capex every saving counts.

A corporate client was helped to better utilise fixed assets using Capex® methods. This achieved both a $10.5million reduction in capital expenditure and improved product quality.

A manufacturer client adopted a key performance indicator (KPI) that was steering management to replace fixed assets rather than incur expenditure to maintain them. We persuaded the company to scrap this KPI and bring in Capex® software. We then trained the organisation in its use. In the next two years “replacement” capex spending fell by 22% and management developed a clear understanding of the context of economic decision making.

A health sector client made direct cost savings of $1.05million from a $3.3million hospital fit-out project – a 32% cost reduction – without reducing healthcare delivery quality in any way. This was achieved using Capex® procurement and appraisal systems.

Good managers and accountants know that reducing costs quickly boosts to the bottom line. So do shareholders. In fact they highly value companies that not only boost revenue but at the same time reduce costs and overheads. Corporates reporting increased sales but also higher costs don’t enjoy share price premiums. So, if you doubt whether the measures taken above really do produce savings or don’t really “ädd value”, then ask yourself this:

Do the key performance indicators of your company truly promote the creation of economic value for your key stakeholder, the shareholder? If not, why not?

To make sure your KPIs and other checks and balances really keep your vital investment on the right track, introduce Capex® software.