Mechanical Lloyd Registers Losses
Charles B.K Zwennes (Right), Terence Ronald Darko (Second Right) with other Board Members of the Company at the AGM.
Mechanical Lloyd Company Limited, a Ghanaian automobile firm that sells BMW, Ford and Massey Ferguson vehicles, has announced that it recorded low sales in 2013.
Charles B.K Zwennes, Chairman of Mechanical Lloyd, who disclosed this in Accra yesterday during the company’s 22 nd Annual General Meeting (AGM), said the company recorded a turnover of GH¢38.41 million in 2013 as against GH¢46.95 percent in the previous year, representing 18.19 percent decline.
‘Selling, general and administrative expensives as a proportion of revenue was 31.15 percent as against 16.6 percent for 2012. This was a direct result of the markedly lower revenue figure for 2013,’ he said.
‘After adjusting for other income of GH¢1,032,981.00, we ended the year with an operating loss of GH¢123,589.00 which after adding finance income and deducting finance costs, resulted in a loss-before-tax of GH¢1,461,297.00 and an income tax credit of GH¢434,126.00. We ended the year with a loss of GH¢1,027,171.00,’ Mr. Zwennes added.
He blamed the development on the harsh economic conditions in 2013, adding that that was the most challenging time in the company’s history.
‘The general business environment in 2013 was extremely harsh and Mechanical Llyod experienced the most challenging times in the company’s history,’ he emphasised.
He stated that Ford whole goods sales recorded 53 percent of the sales in 2012, adding that ‘these low sales resulted in a built-up of stock with its attendant costs.’
BMW, he said, managed to recover from the losses it suffered in 2012.
In the case of Massey Ferguson vehicles, he said they only managed to achieve 25 percent of the set target.
Meanwhile, Managing Director of Mechanical Lloyd, Terence Ronald Darko, speaking in an interview with BUSINESS GUIDE shortly after the meeting, indicated that the economic crunch being experienced in the country ‘is not going to end anytime soon. It may go beyond 2015.’
He stressed the need for government to reduce borrowing and spend wisely.
BY Melvin Tarlue
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