HomeBusiness DigestHigh costs cut Gulliver earnings

High costs cut Gulliver earnings

Shakeman Mugari

GULLIVER Consolidated Ltd chief executive officer Gavin Bailey says the group is losing potential earnings as customers defer purchase due to high overall cost.

The company this week said numerous enquiries had been received from potential customers who had however deferred their purchase owing to the increasing overall costs.

“The company continues to lose numerous enquiries, but customers are deferring purchase due to high costs. However, there is sufficient work for all units in the group and sales values continue to move generally in line with inflationary trends,” said the company in a statement.

Gulliver declined to give details on the amount of business that had been lost and to quantify the state of its order book.

Two divisions – More Wear and Moresteel – have recorded satisfactory volume levels due to orders received from the mining industry during the current quarter.

“Sales continue to be below optimum regarding steel sales and galvanising. However, volumes remain satisfactory at More Wear Industries and Moresteel, both of which are involved in mining projects for the local market,” the company said.

On export market performance the company said there was improvement on the export levels to traditional markets.

Gulliver has secured markets in East Africa where the group says it is still tasting the waters.

The company sells tankers and trailers in East Africa.

New markets are also being explored in other African countries, which the group could not reveal at the moment.

The company said stock market levels in all divisions had been maintained at reasonably high levels with surplus cash being used to restock.

Stocks in March were valued at $759million and were expected to last three and a half months.

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