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Review of operations –
Bid Industrial and Commercial Products continued |
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| PACKAGING CLOSURES |
South Africa’s leading manufacturers of packaging enclosures, strapping and tape achieved a good performance buoyed by sustained growth across the economy. Strong demand across our range was apparent throughout the period.
The company has drawn benefit from last year’s rationalisation programme and the rebalancing of the production and import ratio of our business. The consolidation of factories has continued while the business of IWD was acquired and has been integrated into Afcom.
Increased imports of certain product ranges have enabled us to gain market share in key areas. To drive further growth, we have expanded our sales force and employed more specialist personnel to strengthen our technical support.
Though business conditions remain favourable, skills shortages, raw material shortages and commodity price fluctuations create continuing challenges. Business confidence remains high and many customers are expanding their operations – positive signals for our business. Strong focus will have to be maintained on supply chain management, especially the supply situation from Asia. Maintaining an appropriate balance between local production and imports remains a focus area. Despite these challenges, we expect further growth.
The continuing upsurge in construction activity is proving extremely positive for Ramset, one of the leading suppliers of power-actuated tools to the construction sector. |
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| VULCAN CATERING EQUIPMENT |
This leading South African manufacturer of catering equipment drew benefit from the continued strength of the hospitality sector, largely the result of increased tourist inflows. Closer integration of the administration, manufacturing and distribution components of the business resulted in significant efficiency gains. The business was also strengthened by improved relationships with existing international principals and the securing of new international principals. The enhancement of the leading international technology available to us has complemented strong Vulcanmanufactured house brands.
Revenue increased beyond budgeted expectations and pleasing growth in trading profit was achieved. |
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A R10 million investment in plant and machinery will allow us to sustain higher volumes while maintaining our quality profile. Vulcan offers complete solutions to complex catering needs. Increased training investment and the ongoing development of a service culture will ensure this marketplace position in 2008 is entrenched. Continued growth will be vigorously pursued. |
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