Problems for Gulliver

GULLIVER Consolidated Limited released its financials for the year ended 30 September 2007 in which it registered a turnover growth of 26 353% to $272, 3 billion and a gross profit of $103.1b, growth of 25 868%.

Gross margins fell from 39% to 38%. The PBT grew by 13 059% to $169, 6 billion to give an attributable profit growth of 9 933% to $114, 4 and an EPS of $2 351.

The bottom line growth does not compare favourably with inflation, implying Gulliver was for the greater part of 2HY07 destroying shareholder value.

Total assets went up by 15 508% to $483, 4 billion whilst cash flows improved by 11,422% to $28,5 billion.

The suspension of electrification and delays in telecommunication projects negatively affected the Industrial Galvanising and Fabricating division’s contribution to group turnover, thereby exposing the dangers of relying too much on government projects.

More Wear Industries recorded a 113% increase in steel tonnage,18% being for exports against budgeted 15%.

Plant Hire’s fleet of railway wagons and tankers was on hire for just over 60% of the possible time.

While fuel and acid tankers’ revenue contributed 10% of export sales. There was a 55% increase in volumes at Lysaght Steel Merchants and Megasteel.

Post published in: Economy

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