JSE-listed vehicle electronics manufacturer Control Instruments aims to increase its profit before tax by almost 600% in 2007 to R150 million.
An "aggressive" acquisition programme and efficiencies will underpin this goal, the group says.
During the year ended 31 December, Control Instruments made several acquisitions. These include a 51% share in a US company Tripmaster for $3.5 million and the R100 million purchase of Port Elizabeth-based Sagercy Plastics.
Early this year it acquired Transport and Fleet Products, including Autocom, for R9.5 million, and in October it purchased Dana South Africa for R115 million.
CEO Richard Friedman says these acquisitions should boost group turnover and the company`s presence in its various markets, while giving it a greater international footprint.
Friedman says the main aim of the US acquisition is to give it access to one of the largest fleet management and trucking markets in the world. Control Instruments` fleet management products are distributed in the US through Siemens under its own brand name.
He says Control Instruments is setting up a computer bureau operation in the US that will outsource the various transportation parameters for trucking companies, such as the different fuel prices and state tax laws.
Control Instruments` revenue in 2005 grew by 3.3% to R395.1 million and net profit increased by 13.5% to R22.3 million, raising earnings per share to 32c, a gain of 6.3%.
Profit before tax decreased by 14.4% to R27.1 million with major factors being share options expenses of R3.8 million, the implementation of a common IT platform called Sage, and an increase in interest, depreciation and amortisation as a result of assets acquired through organic growth and acquisitions.
Related story:
Control Instruments buys US firm
Share