Control Instruments - Further significant increase
Control Instruments - Further significant increases in operating profit and
dividends
CONTROL INSTRUMENTS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1964/003987/06)
Share Code: CNL
ISIN: ZAE000001665
(`Control Instruments`)
CONTROL INSTRUMENTS - FURTHER SIGNIFICANT INCREASES IN OPERATING PROFIT AND
DIVIDENDS
Control Instruments` profit before tax increased 114% to R30m for the year ended
December 2004. At R382 million revenue was up 7.4% with gross profit up 27.1% to
R172 million. The declaration of a final dividend of 3 cents per share brought
dividends declared for the year to 5.5 cents per share, a 57% increase compared
with 2003.
From a solid based of continued growth over the past four years, Control
Instruments is actively looking for acquisitions that are inline with its
strategy to own selected real estate on vehicles. Explains MD Richard Friedman,
`vehicles are simply many different parts/components moving together in the same
direction`. After 15 years of working with the OEM motor manufacturers, Control
Instruments is in a strong position to capitalise on its experience and the
relationships it has developed.
Noting that the South African automotive industry is undergoing a period of
major change as local OEM operations are incorporated in the worldwide supply
chains of their international owners, coupled with the timing of model phase-
outs and new model introductions, Friedman said that 2005 will be a year of
consolidation and preparation for substantial customer commitments, the full
effects of which will be felt in 2006.
Friedman described 2005 as a year of consolidation and continued growth - in
preparation for the accelerated growth expected in 2006. Objectives for 2005
include the roll out of a broad-based BEE programme focusing on staff
development and the promotion and support of SMMEs as well as the establishment
of a significant UK based sales and engineering presence so that the Group can
be closer to the global decision making centres of its current and targeted
customer base.
Friedman added that the Group would continue to invest heavily in the
development of new products that incorporate its own IP - such as its Bureau
Service. Launched at the beginning of 2004, the service had exceeded its targets
by the end of the year. It is an internet based vehicle, fleet and equipment
management service, which puts real-time information about vehicles, vehicle
fleets and other equipment or assets onto the owners computer, PDA or mobile
telephone
Friedman said the Group would continue to purchase shares in the open market as
and when prices were attractive.
ENDS
Date: 15/03/2005 07:01:01 AM
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