Phoenix Consolidated Industries saw its sales improve from $2.5 billion in 2002 to $13.5 billion last year but it has invested heavily into four of its subsidiaries because it believes new and improved products have to be introduced to stimulate demand both locally and in the region.
According to its report for the year ending October, trading profit increased from, $659 million to $4.9 billion and net profit shot up from $466 million to $3.4 billion.
The company says since volumes had only improved marginally, it had accepted that new and improved products had to be introduced to stimulate demand.
It had therefore implemented significant capital projects at Premier Products, JW Searcy, Scandia Wire, and William Smith & Gourock.
Local sales at Phoenix Brushware had declined but regional sales had increased. The unit was likely to import new machinery towards the end of this year.
Lack of new low cost housing had led to a drop in budget lines from Premier Products which manufactures bathroom ware.
The replacement market had, however, remained steady. The unit was now capable of manufacturing quality tanks of up to 10000 litres which were in demand in the region.
Scandia Wire had invested heavily on a wire drawing line, a diamond mesh machine and a full galvanized line to widen its range of products.
The diamond mesh machine was going to allow the unit to meet back orders from Botswana while the galvanized wire line would open new markets in the region and the first world.
Scandia Wire had the highest exports within the group.
JW Search had an excellent year and was the best performing unit within the group until August. It generated the most cash within the group.
William Smith & Gourock was the group’s top performer. Although it had a subdued first half, it had an outstanding second half and ended up winning awards for being the top overall unit, the most profitable unit and the unit with the highest turnover.
In October Phoenix purchased the business and assets of Eureka Rubber allowing William Smith & Gourock to supply a complete range of protective clothing.
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