Annual Report 10/11 - ACL Cables PLC

ACL Cables PLC Annual Report 2010/11conditions should be such that a certain percentage of material and labour should be sourcedfrom within the local industry.Future OutlookThe copper rod manufacturing plant becoming operational during the 2011/12 financial yearheightens the possibility of improved future operational margins. This backward integration willensure that quality is controlled along the supply chain at ACL.Further, the reduction in corporate tax rates by 7% to 28% is a positive move by the governmentand will serve to enhance our growth potential in the near future.Looking ahead, we plan to drive down costs and place an emphasis on deriving cost efficienciesin our operations. Our endeavor will be to improve production efficiencies through innovativemethodology. We are upbeat about the future as any improvement in the contribution margin willdirectly increase profits for the Group.Moreover, we have our sights trained on new export markets, with plans to penetrate marketsin which we already have a presence, which are Australia, New Zealand and East Africa.The government’s renewed commitment to infrastructure development will have positiverepercussions for our business, as we possess the capacity to supply large volumes of wiring forroad lighting, etc. The thriving tourism industry and the slew of upcoming hotel projects will fuelour business growth further.AcknowledgementsI would like to express my appreciation to the Board of Directors for their sound guidance andencouragement. Further, our employees have contributed significantly to the Group’s exceptionalperformance during the year. In conclusion, I would also like to thank the CEB and our other loyalcustomers for their continued patronage.The future prospects for the ACL Cables PLC Group are bright and we plan to leverage on all thestrategic initiatives undertaken during this financial year to achieve an even more prosperous2011/12.Mr. Suren MadanayakeManaging Director25th August 201111