VOLTEX ELECTRICAL DISTRIBUTION

All teams put in a solid performance, registering good results in all centres. Similar patterns were apparent across most operations countrywide: good volume growth with constant pressure on margins. In the first half of the year, electrical wholesaling margins were impacted by weak copper prices, though this trend was reversed to some extent as the year progressed.

A challenge was created by a fall-off in residential construction, but teams optimised opportunities at the commercial end of the market and are well placed to benefit from continued activity in the low-cost housing field.

Consolidation of KwaZulu-Natal operations and incremental improvements to the national network delivered substantial benefits and created a strong platform for further growth.

BERZACKS

Competitive pressure on the industrial sewing and embroidery machine sector remained intense, largely as a result of Chinese imports. Strikes in France also affected product availability in certain retail lines. The business increased its range of imports while continuing its diversification strategy. Further widening of the retail product offering is planned. A satisfactory result was achieved in extremely tough trading conditions.

EASTMAN STAPLES

The UK sewing machine supplier began to reverse the pattern of persistent losses and put in a reasonable performance. Total focus on expense control brought the business back into the black, but trading conditions have continued to soften. In the UK, a year of no growth is forecast with belt-tightening by both consumers and business.

CATERING EQUIPMENT
Vulcan Catering Equipment

The business put in a steady performance in the face of mounting import pressure. The team reacted by investigating new imported lines. Export potential for Vulcan’s range is being explored.

STATIONERY
Waltons Stationery Company

The Gauteng reorganisation by Waltons is proving successful. The structure comprises two commercial hubs (specialist commercial operations serving business), refurbished flagship retail stores in high-profile locations and a supporting tier of combo-stores that serve a mix of retail and commercial customers.

Flagship stores are redefining the stationery shopping experience. Integration of furniture showrooms into the stationery environment supports cross-merchandising while responding to the customer need for one-stop convenience. Momentum achieved by the new-look Waltons helped to counteract the effects of the economic slowdown. Results were further bolstered by a successful back-to-school season, a concept that was initiated by Waltons and has become a core element in marketing programmes across the industry. Stronger impetus was achieved by our corporate gifts business unit. This has been identified as a potential growth point and is now a separate division. Results were somewhat ahead of expectations.

Kolok

Kolok was impacted by intense margin pressures and a resilient rand in a market for consumer peripherals and consumables that remains extremely price sensitive. Improvements were achieved in the second half of the year following intense focus on cash flow and inventory optimisation. Sales volumes also picked up. Continued momentum is anticipated as the business’s new ERP system beds down nationally and further efficiencies and workflow improvements are delivered by the relocated branches.

OFFICE FURNITURE
CN Business Furniture

The business drew continuing benefit from its rebranding programme and restructure. It put in a pleasing performance. Reinvention continues. The opening of CN’s first new-generation concept store in Rivonia is imminent.

Dauphin

Dauphin performed exceptionally well, buoyed by high levels of activity in the corporate project market.

Seating

Our specialist chair-maker had a difficult year. Some local production jobs were lost. Rebalancing in favour of imported lines will continue, dependent on developments in currency markets.

PACKAGING CLOSURES
Afcom

Afcom was under pressure in the first half, but recovered well and grew market share to put in a good overall performance. Pricing pressures continued, making it necessary to step up the imported component of the Afcom product line-up. Afcom has moved closer to an optimum balance of imported lines and local manufacture. Periodic refinements will be made as necessary.

Buffalo Executape

The business entrenched its position as the country’s leading converter and supplier of adhesive tapes, putting in a satisfactory performance. Strong sales growth was achieved. The diversification strategy into retail lines – now about 15% of the business – is working well, despite increased pressure on consumers.