Annual Report 10/11 - ACL Cables PLC

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ACL Cables PLC Annual Report 2010/118ACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACACL CaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCablblblblblblblblblblblblblblblblblblblblblblblblbleseseseseseseseseseseseseseseseseseseseseseses PLCL Annual Report 2010/118
ACL Cables PLC Annual Report 2010/11Managing Director's ReviewACL Cables PLC performed exceedingly well torecord a turnover of Rs. 5.18 Bn in 2011 as comparedto Rs. 3.49 Bn in 2010. The Company's Profits beforeTax recorded Rs. 33.9 Mn in 2011 after registering aloss of Rs. 146.8 Mn in the previous year.I am pleased to report that ACL Cables PLC performed exceedingly well to record a turnover ofRs. 5.18 Bn in 2010/11 as compared to Rs. 3.49 Bn in 2009/10. The Company’s Profits before taxrecorded Rs. 33.9 Mn in 2010/11 after registering a loss of Rs. 146.9 Mn in the previous year.Meanwhile, ACL Cables PLC Group’s Profits before tax moved significantly upwards from Rs. 196Mn previously to Rs. 449.7 Mn in the period under review.As a result of this commendable performance by the Group companies, the ACL Group marketshare increased significantly. This performance was achieved despite a sharp increase in the costof raw materials in our manufacturing process, particularly, copper and aluminum. Prices forcopper averaged USD 8,140 per Tonne in the year under review in contrast to an average price ofUSD 6,101 per Tonne in 2009/10.Factors Supporting Our GrowthOne of the most favourable developments during the year to have directly contributed to ourperformance has been the expansion of rural electrification efforts by the Ceylon Electricity Board(CEB). As one of our main clients, this increase constituted an upsurge in demand for our products,thereby contributing to our improved turnover. Accelerated infrastructural and economicdevelopment in the north and east will boost the economy further and in turn benefit ACL. Most ofthese newly developed regions will witness enhanced CEB activity and have a trickle-down effecton our Company’s operations in the future. As a result of this flurry of development, we expecthouseholds and institutions in the north and east to become our retail clients over time.The stellar performance by the ACL Group has been meticulously mapped out and some of thesalient reasons for this performance are a focus on production efficiency, which leveraged onimproved debtor control, inventory control and advanced production best practices. Furthermore,the decrease in interest rates in the market had a far reaching impact on our Group performance.The year 2010/11 was memorable for the Company as we were successful in achieving ourobjective to increase ACL brand presence in the market whilst also positioning it as a preferredbrand. As a result of these strategic sales and marketing efforts, the brand increased its marketshare during the year, consequently strengthening its dominant status in the industry. The ACL9
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Corporate InformationCOMPANY NAMEAC
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