Monday, July 5, 2010

Mechanical Lloyd turnover dips by14 percent

Mechanical Lloyd Company has achieved a turnover of GH 22.1 million for 2009.This represents a decrease of 14 percent below its 2008 figure of GH 25.8 million.

The decrease was as result of the decline in the sales of motor vehicle by 19 percent
The company also declared a dividend payment of GH 0.0045 per share, down by 25 percent from that of GH0.0060 per share paid for 2008.

However the spare parts sales and workshop earnings component of turnover improved by eight percent, and rental income from investment properties also increased by 20 percent during the year under review.

Charles Bartels Kwasi Zwennes, Board Chairman, Mechanical Lloyd Company made this disclosure in Accra at the annual general meeting.

He indicated that the company’s gross profit margin on turnover increased from 19 percent in 2008 to 21 percent in 2009 mainly on the account of the fact that a larger proportion of the 2009 sales was to the private sector rather than for government tenders where margins are thinner.

Zwennes explained that: “As a result of sound and prudent financial management, we managed to reduce selling general and administrative expenses by GH 393,854, 8 percent, even in the face of considerable inflation.”

Ford, the company’s mainstay performed poorly during 2009, achieving only 51 percent of set target, and a drop in sales of 47 percent as compared to 2008.

The Ranger Pick-Up, model in the Ford stable did even worse-achieving only 45 percent of the target.

This was because Ranger customers are mainly contractors who depend a lot on government business and the new government naturally took some time to settle down to prevent its first budget before funds could start to be released for government contracts.

The Sport Utility Van (SUV) did considerably better, but saloon cars continue to find it difficult to make the expected breakthrough.

The BMW cars performed better, achieving 63 percent of the target while, the X5 achieved 73 percent of target and the X6, in its first year of introduction, and model that is not stocked but imported strictly on order, achieved 167 percent of set target.

“Having successfully weathered the storm in 2009, we believe the worst is behind us and we expect our performance to improve appreciably hereafter,” Zwennes remarked.

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