Oct 30, 2012, 11:13 AM
CFAO Motors Gambia has made substantial recovery in the financial performance of the company for the year ended 31 December 2011.
From a 2010 year loss after tax of D4,915,000, the company achieved a loss after tax of D383,000 in 2011, said Philip Huart, managing director of CFAO Motors Gambia, at the company’s 38th Annual General Meeting held on 5 July this year.
The main reasons for this improvement are higher turnover of D197.4 million from a turnover of D181.4 million in 2010; higher margins resulting to higher gross profit of D34.8 million from D20.5 million in 2010, and lower general and administrative expenses of D24.2 million from D26.5 million in 2010.
Mr Huart explains the rationale behind his company’s struggling financial performance in 2011: “The main reasons why this improvement was not enough for a return to profit are the scarcity of foreign currencies and depreciation of GMD against US Dollar mainly, which has caused a net loss of D3.02 million; interest paid to our main supplier for late payment of invoices for the sum of D1.26 million; the significant increase of prices of general contracting and supplies: costs of electricity and fuel; and interest on short-term loans paid to banks for a total amount of D484,000.”
On the company’s trade performance, he said: “In 2011 we have achieved a total sale of 146 Toyota (against 123 in 2010), 16 Suzuki (against 18 2010), 1 Renault car (new brand), and 3 Suzuki Trucks + 2 Dong Feng trucks (new brands). Altogether, the total 2011 new vehicles sales were 168, against 143 in 2010.”
He added: “CFAO Gambia also sold 150 motorcycles against 205 motorcycles in 2010 and 131 in 2009, 47 generators (31Yamaha and 16 FG Wilson) against 59 in 2010 (53 Yamaha and 6 FG Wilson).”
The number of vehicles sold went up by 17%., Mr Huart reported, saying the main reasons for “the good results for New Vehicles sales are mainly thanks to a 19% increase for Toyota brand vehicles, and introduction of new brands (Renault, Suzuki trucks, and Dong Feng trucks)”.
Investment realised in 2011
The total investments made by CFAO Motors Gambia in the year under review was D4.18 million mainly on the following assets: car rental (Avis Department) was D1 million and Improvement and general fittings and fixtures was D1.85 million, whilst investment in technical equipment for workshop (lift, compressor and tools boxes) stood at D1.120 million.
Property, plant and equipment
In the 2011 financial year, there has not been any permanent diminution in the value of property, plant and equipment and as a result a provision has not been deemed necessary, stated the company directors’ report.
Results and dividends
However, the directors did not recommend the payment of dividend as the company made a loss of D0.3 million for the year ended 31 December 2011.
Forecast for the year 2012
CFAO Gambia will continue to invest in staff training to improve and set high level of service, said Mr Huart.
“Our after Sales Manager as a former mechanic is well skilled and experienced on our brands and is assisting our technical staff to upgrade their level. In May a Toyota trainer came to train 4 CFAO Gambia workshop technicians for one week. They all passed exams and are now official Technicians. Thus, all the technicians working in our workshop today are Toyota graduated technicians.
“Companies as well as individuals have confidence in CFAO because it delivers rare quality of service that we need to maintain.”