Home   >   Markets   >   201306   >   Mechanical Lloyd Records Improved Sales

Mechanical Lloyd Records Improved Sales
Posted on: 26-Jun-2013         Source: Daily Guide
Mechanical Lloyd Ghana (MLG) Limited recorded sales turnover of GH¢46.95 million, representing an increase of 38.64 percent over GH¢33.86 million for 2011.

The sale of vehicles increased by 46.4 percent while the sale of spare parts and workshop earnings shot up by eight percent.

Selling, general and administrative expenses recorded 16.6 percent in 2012 against 17 percent in 2011.

Charles B.K. Zwennes, Board Chairman of MLG, who disclosed this at its Annual General Meeting (AGM) in Accra recently, said after adjusting for income of GH¢469,487 due to fair value gain on investment property and interest from treasury bills of GH¢207,260, the company ended the year with a net total comprehensive income of GH¢6,214,660, 95.08 percent higher than the 2011 figure of GH¢3,185,739.

Owing to an improvement in performance, there was a dividend payment of GH¢0.015 as against GH¢0.008 paid to shareholders the previous year.

“As in previous years, we continued to suffer from cuts from production and supply problems with regard to Ford products from the manufacturer. Even in the face of these setbacks, Ford, in total, achieved 93 percent of projected sales.

Despite virtually running out of stock in the second and third quarters, the Ranger, the volume model of the brand, achieved 103 percent of its target for the year and a 34 percent increase in volume over sales for 2011.

The new Explorer generated a lot of interest.

“However, similar strong demand for it from other parts of the world ensured that we could not receive our orders until well into the second quarter.

“We continue to struggle to sell the Ford Saloon cars. The main reason for this is the fact that they are produced in Europe and therefore suffer from being priced in the more expensive Euro whereas its rival competition are produced and priced in dollar denominated countries and are therefore considerably cheaper. We only achieved 50 percent of set targets.”

MLG started the sale of Ford Transit Bus during the year and it was highly patronized by customers.

In spite of the usual delivery problems, it achieved 109 percent of its target.

“MF had a very good year achieving 175 percent of its target. This was the result of the strengthening and improvement of our relationship with units under the USAID Project who are funding the acquisition of farm equipment for new non-traditional crop exports.”