Frontline brand new automobile distributor, R.T Briscoe has said that it will take advantage of the reduction in duties on heavy duty automobile announced by the Federal government in the 2012 budget to grow its dwindling fortune in the industry.
The near crash in the automobile business which is affecting many distributing companies in the country due to declining purchasing power especially among the middle class has prompted the company to take a critical review of its business strategy by investing in the non motor business.
Frontline brand new automobile distributor, R.T Briscoe has said that it will take advantage of the reduction in duties on heavy duty automobile announced by the Federal government in the 2012 budget to grow its dwindling fortune in the industry.
The near crash in the automobile business which is affecting many distributing companies in the country due to declining purchasing power especially among the middle class has prompted the company to take a critical review of its business strategy by investing in the non motor business.
Chairman, R.T.Briscoe, Adekunle Olowokande addressing stakeholders during the company’s 2011 annual general meeting in Lagos said outcome of the review of its strategic business resulted in the increase of its shareholding in strategic in Briscoe Property Limited [BPL] thus making it a subsidiary of R.T. Briscoe.
According to him, on motor business has actually contributed significantly to the growth of the group by raising turnover from 6 percent in 2010 to 12 percent in 2011.
He said the development was remarkable because it helped to reinforce the long term objective of deepening the technical and industrial equipment aspect of the company’s business.
The automobile business he added showed a slight improvement especially in the area of after sale services as a new Toyota sales and service outlet commenced business in Asaba the Delta State capital, pointing out that Toyota business recorded stiff competition and low margin due to mainly the increasing landed costs of vehicles.
He announced that profit after tax of the company increased by 30 percent and 42 percent respectively in 2011 from N15.1 billion and N40.3 million in 2010 to N19.6 billion N215.9 million in 2011.
Olowokande also attributed non performance of its target to the fact that the company deals on capital goods and that the a sizeable number of its products are sold on credit and with the increase in turnover, trade debtors increased pro rata from N2.3 billion to N5.4 billion.
However [BPL] is engaged in facility management, property development and project management and the sale and leasing of property bringing to the Briscoe group the opportunity to tap into the lucrative property market.
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