Mechanical Lloyd Company Limited, which holds the franchises for BMW, Ford and Massey Ferguson, has achieved a turnover of GHÂ¢33.86 million, representing an increase of 18.97% as against GHÂ¢28.46 million in 2010.
Contributing to this impressive mark, motor vehicle sales increased by 16.41% and spare parts and workshop bagged by 31.38% for the automobile retail firm. While selling, general and administrative expenses as proportions of revenue were maintained at 17% in 2011.
The Board Chairman of the Mechanical Lloyd Company Limited, C.B.K. Zwennes, announced this at the company's Annual General Meeting (AGM) in Accra over the weekend.
He told the shareholders: "After adjusting for other income of GHÂ¢2,896,124 (2010: GHÂ¢2,106,990) arising mainly from fair value gain on investment property, and net finance costs of GHÂ¢123,455 (2010: GHÂ¢522,871) we ended the year with a net total comprehensive income of GHÂ¢3,185,739 which is 119% higher than the 2010 figure of GHÂ¢1,454,239."
Following this improvement in the year's performance, the directors recommended the payment of a higher rate of dividend from six pesewas per share in 2010, to eight pesewas per share for 2011, an increase of 33.3% to shareholders.
Further reviewing the performance of the company, Mr. Zwennes revealed that sales of whole goods for 2011 showed a marked improvement over those of 2010. Even so, they would have been better still, especially for Ford, but for a plethora of unfavourable factors.
The Board Chairman added: "Ford achieved 93% of projected sales, which was still 15% above total sales for 2010. The flagship in the Ford stable, the Ranger, registered a 34% increase over 2010 sales." This, he noted, was 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 sales of the Everest, which is produced in the same factory, also suffered for the same reasons.
"With SUV's, the new Explorer and Edge are making a very positive impact, having already outperformed their target by over 60%, despite delivery delays. We are also beginning to make inroads in the sale of the larger Ford models like Ford transit bus, F150 and F250 trucks," Mr. Zwennes told the shareholders.
According to him, in improving its sales performance for 2011 by 5% over that of 2010, BMW achieved 98% of its target for 2011. 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% and 40% of targets respectively, the 4WD models X1, X3, X5 and X6 achieved 200%, 175%, 133% and 120% of targets respectively.
Anticipated sales that could not come through in 2010 because of delivery delays materialised in 2011, and helped Massey Ferguson to achieve 144% of target, he explained.
After achieving a breakthrough in 2008, following the introduction of a high quality training programme for all their technicians, the Accra Service Centre (ASC) has continued to deliver outstanding customer service and good performance figures, by the results of Customer View Point (CVP) survey carried out each month, Mr. Zwennes disclosed.
For the year 2011, ASC achieved a revenue of GHÂ¢5,686,666, exceeding its target by 6%, which translated into a net profit before tax of GHÂ¢574, 013, constituting 165% of its budget. Ford contributed 60% of this figure, and BMW contributed 40%.
In terms of throughput, Ford, in achieving 111% of the target, contributed 69.5% of total throughput, while BMW contributed 30.5%, he stated.
In June 2011, BMW AG Munich confirmed the pre-eminent position and high standard of ASC among its operations in Sub-Sahara Africa (SSA) by selecting it as the Training Centre for the SSA excluding South Africa. Construction and equipping of the Training Centre are far advanced, and are scheduled for completion and launch this year.