Control final results December 2010
Group revenue increased 7.8% to R906.1 million for the year ended 31 December 2010 from R840.4 million in the previous year, while gross profit increased 11.5% to R246.9 million compared with R221.4 million. Normalised EBITDA increased by 32.1% to R43.0 million in the year under review. The resultant profit after tax of R2.2 million for the year ended 31 December 2010 is a significant improvement when it is considered that the group lost R22.3 million and R75.7 million in the 2009 and 2008 financial years respectively. Headline earnings per share were 1.7 cents in 2010 compared to a loss of 10.8 cents in 2009.
No dividend distribution was declared
The company continue to remain optimistic about the future of the group. The automotive industry is recovering. However, there is still a large degree of uncertainty and the potential for setbacks in Control's business can and does exist. Cash will continue to remain tight during 2011, mainly as a result of the funding requirements of growth, investment in product development and the capital expenditure required in the firm's factories. The ramp up into full production of new OEM programmes is always a stressful and difficult time. The successful implementation of these programmes is critical if Pi Shurlok is to achieve an acceptable level of performance. Senior management changes, particularly the appointment of Sean Rogers as Group COO, have been made with this in mind. The Aftermarket business is reaching the critical mass that should enable it to continue to generate good profits and cash. In due course the company will be looking to acquire additional premium branded products for the Aftermarket business. The continued investment of both time and money in Pi Shurlok`s Open ECU Trade Mark technology should enable it to continue to win additional business internationally.