| Wed 10 Mar 2004, 10:58 | | OWN IP PRODUCTS CONTRIBUTE |
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Control Instruments Group Limited - Press Release
Release Date: 10/03/2004 10:30:01 Code(s): CNL
Control Instruments Group Limited - Press Release
Control Instruments Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1964/003987/06)
Share Code: CNL
ISIN: ZAE000001665
("Control" or "the company")
PRESS RELEASE
OWN IP PRODUCTS CONTRIBUTE TO CONTROL"S CONTINUED SUCCESS
Automotive electronics group Control Instruments has benefited from its
investment in plant, equipment and product engineering and development.
Speaking at the results presentation, MD Richard Friedman said the strong growth
for the third consecutive year was attributable to the Group"s continued focus
on the automotive industry and the new products developed where the Group"s
subsidiaries own the Intellectual Property (IP).
At R356 million, revenue was up 6.2% with gross profit up 18.4% to R135 million.
Profit before tax increased 48.3% from R9.7 million to R14.4 million. Headline
earnings per share increased 110.3% to 28.6 cents. The dividend for the year was
also up with a final dividend of 2.0 cents being declared bringing the dividend
for the year to 3.5 cents, a 75% increase compared with 2002
Friedman said the Group will continue with its capital expenditure and product
development programme. He added that returns from this ongoing investment are
becoming more evident in the bottom line.
Shurlok, based in Pietermaritzburg, produces electronic products for the OEM
(original equipment manufacture) industry. Its growth and good results are as a
result of the positive effect of the investment in plant and equipment and in
particular in the development of new products for which it owns the IP, such as
engine control units, body comfort electronics and instruments clusters, which
have led to improved sales.
Control Instruments Automotive Trading (CI-AT) which distributes Siemens VDO
products and the Group"s VDO FM platform in sub-Saharan Africa had an
exceptionally good year on the back of changes in product mix and benefits of
the strengthened rand.
Control Instruments Fleet Management Services (CI-FMS) which designs and
develops the range of onboard computers dropped volumes and profitability as a
result of the downturn in Western European markets and the stronger rand.
Nevertheless, it remained profitable and had positive cash flow during the year
and the outlook for 2004 is positive.
Friedman said that the Group would continue to purchase shares in the open
market when appropriate as part of its focus on shareholder value. Twelve
million shares were acquired during the year and 4.2 million of these have been
cancelled and delisted from the JSE Securities Exchange South Africa. Control
has 84.3 million shares in issue.
Friedman commented that indications are that the South African automotive
industry will continue to grow and become more and more integrated into the
global supply chain of automotive manufacturers. Control Instruments has a good
balance of exports, imports and local business and a strong forward order book
and balance sheet. Barring any unexpected local or international disruptions,
prospects for 2004 are positive.
Shurlok www.shurlok.com
Shurlok manufactures electronic products for the local and international OEM
automotive industry. It is based in Pietermaritzburg with advanced engineering
facilities in Pretoria.
CI-Fleet Management Services (CI-FMS) www.cifms.co.za
CI-FMS designs, develops, markets and owns the IP (Intellectual Property) for
the VDO FM platforms. These products are used to manage and improve the
efficiency of vehicles and vehicle fleets and are sold worldwide under the
Siemens VDO FM brand name.
Siemens VDO is the acknowledged world leader in fleet management systems and 80%
of CI-FMS" unit sales are sold internationally through Siemens VDO"s worldwide
distribution network.
CI-Automotive Trading (CI-AT) www.ciauto.com
* Specialised automotive instrumentation
* Audio and navigation systems
CI-AT is the sole distributor of Siemens VDO products in sub-Saharan Africa. It
is one of Siemens VDO"s six worldwide distribution nodes.
Group customers
Group customers include, BMW, Bentley, Daimler Chrysler, Delta, Ford, GM, Lotus,
MG/Rover, Nissan, Proton, Renault, Siemens VDO, Toyota and Volkswagen.
Cape Town
10 March 2004
