The Trade cluster's performance was excellent, and a renewal plan implemented at Bidvest Electrical is yielding positive results with Voltex, Cabstrut and Eagle Lighting trading exceptionally well. The plumbing business continues from strength-to-strength and its phenomenal trading year was driven by an outstanding increase in turnover.
The Catering cluster posted an impressive trading profit increase despite major challenges in the hospitality industry. Vulcan's export revenue growth was strong and King Pie's results increased considerably.
The DIY, Tools and Workwear cluster produced a good trading result boosted by the increase in DIY demand as people spend a greater proportion of time at home. Exceptional market gains were also evident in this cluster as new product lines were launched in Academy Brushware and G. Fox and improved factory recoveries were achieved. There were good market share gains as a result of stock availability, product innovation, and an enhanced sales focus.
The Leisure cluster grew profit exponentially as consumer spending patterns shifted and sales of certain lifestyle products increased. This was apparent from the terrific results reported by Yamaha. Supply chain constraints are concerning, but this is expected to improve over the coming months.
The Industrial cluster delivered pleasing results with the business securing significant market share from competitors.
A key highlight in this division is that Plumblink, Electrical, Academy Brushware, Matus, Yamaha, Afcom, Burncrete and Vulcan all reported high double digit profit growth off the 2019 financial year. There was solid revenue growth as demand from mining, automotive, apparel and industrial customers were met with available stock. Cash generation and the operating cash ratio were additional highlights.
Looking forward
Investments have been made into manufacturing and distribution facilities to improve efficiencies and create capacity for growth.
Management is focused on selling a broader product basket to existing customers, and the division is ideally suited to be a beneficiary of government development programmes.
Product availability will remain critical, while operational cost management and inventory control is receiving focused attention.
The initial indicators of underlying demand is improving particularly in the mining, agricultural and DIY sectors.
