Net profit of Mechanical Lloyd rises to GH¢9.6m
The net profit of luxury car dealer, Mechanical Lloyd Company Limited, rose from GH₵2.4 million in 2014 to GH₵9.6 million in 2015.
This represents a 300 per cent growth over the one-year period.
The strong growth in the company’s net profit was as a result of a 52.9 per cent increment in turnover for last year. In 2014, Mechanical Lloyd’s turnover was GH₵30.64 but rose to GH₵46.84 million in December, 2015.
The company’s audited financial statement, however, showed that total assets decreased from GH₵80.6 million in 2014 to GH₵70.3 million in 2015.
These were contained in the annual report presented to shareholders at the company’s annual general meeting in Accra.
Dividend payment
As a result of the strong financial performance of the company in the year under review, the Board of Directors recommended a cash dividend of GH₵0.03 per share, which amounted to GH₵1.5 million.
Mechanical Lloyd had, in the interim, paid a dividend of GH₵0.02 per share to shareholders during the year.
Its Chairman, Mr Charles Zwennes, said the market share of Ford vehicles, one of the brands the company retails in the country,doubled as a result of the huge increase in sales from a management strategy to clear inventory.
He added that the company was able to clear its indebtedness to its debtors as well as make a strategic decision with regards to the statement of overseas trade bills in order to mitigate the foreign exchange risk due to the whole Ford sale that achieved a 198 per cent in 2015.
He stated that BMW and Ford certified trainers would continue to conduct extensive practical and theory-based technical training to the company’s technicians both online and at their Regional Training Centre for them to be armed with modern trends.
Way forward
He said the company was looking forward to marketing and selling the new Ford Explorer, Ford Everest, Ford Ecosport, Ford Fusion and Ford Ranger models, which are beginning to get higher ratings from customers nationwide.
He also added that the board and management would continue to ensure that the company operates prudently by applying the necessary risk mitigating measures.