Mechanical Lloyd Nets GH¢3.18m Income

Mechanical Lloyd Company Limited (MLC) recorded a net total comprehensive income of GH¢3,185,739,119 at the end of the 2011 financial year, representing 119 percent over its 2010 figure of GH¢1,454,239.

This was after it adjusted other income of GH¢S2,896,124 arising mainly from fair value gain on investment property and net finance costs of GHS123,455.

C.B.K. Zwennes, Chairman of the company’s board of directors, who disclosed at the its Annual General Meeting (AGM) yesterday in Accra, said Mechanical Lloyd showed a marked improvement in its sale of whole goods for 2011 over those of 2010.

“Even so, this would have been better still, especially for Ford, but for a plethora of unfavourable factors.”

With its Ford class, Mr Zwennes said MLC achieved 93 percent of projected sales which was still 15 percent above total sales for 2010 in spite of production cuts by the manufacturer due to the ‘Tsunami’ in Japan followed by floods in Thailand which badly affected the production of some components for the Ranger.

The sale of Everest, which is produced in the same factory, also suffered as a result of the same reasons.

“With the SUVs, the new Explorer and Edge are making a very positive impact having already outperformed their target by 60 percent, despite delivery delays. We are also beginning to make inroads in the sale of the larger Ford models like the Ford Transit Bus, F 150 and F250 trucks.”

With regard to its BMW range, Mr Zwennes said BMW achieved 98 percent of its target for 2011, improving its 2010 figure by 5 percent.

“There is a definite shift in customers’ preference away from the normal saloon models. Whereas the saloon 1 series and 5 series achieved only 25 percent and 40 percent of targets respectively, the 4-WD models: X1, X3, X5 and X6 achieved 200 percent, 175 percent, 133 percent and 120 of targets respectively.”

Touching on its Massey Fergusson brand, the board chairman said the anticipated sales that could not come through in 2010 because of delivery delays materialized in 2011 and helped MF to achieve 144 percent of target.

Also on its Accra Service Centre (ASC), he noted that after achieving a breakthrough in 2008 following the introduction of a high quality training programme for all technicians, ASC continued to deliver outstanding customer services.

For 2011, ASC achieved revenue of GH¢5,686,666 exceeding its target of 6 percent, which translated into a net profit-before-tax of GH¢574,013, 165 percent of budget.

Ford contributed 60 percent of the figure with BMW contributing 40 percent.

Following the improvement in its performance for 2011, directors of the company recommended the payment of GH¢0.0080 per share as dividend to shareholders.