Tractive Power Holdings Limited (TPH) operating profits for the year ended August 31 2011 tripled to $1,9 million driven by a strong performance at Barzem, the group caterpillar franchise operation.
Profit rose from $619 000 the previous year.
The group recorded a revenue increase of 42% to $36,8 million during the period under review up from $25,9 million.
Earthmoving and materials handling equipment unit sales at Barzem grew by 139% whilst sales of tractors and generators at Farmec and Northmec increased by 149%.
In a statement accompanying the groups’ financial results, Tractive Power said: “The major portion of this profit came from a strong performance at Barzem, the group caterpillar franchise operation.
“In addition a favourable sales mix, improved cost management and staff rationalisation exercise added to this improvement.”
TPH said sales of motor vehicles units at Puzey and Payne rose by 45%. Group parts and services sales volume grew on last year comparatively by 36% and 33% respectively.
During the year, the group secured franchise representation for Toyota vehicles.
“The operation, which is trading as Mutare Toyota has enhanced product offering at Puzzey and Payne,” the company said.
Profit before tax of $2,4 million was 6,4 times compared to last year due to tax credit in the previous year.
The group said given the projected positive growth in the mining and agriculture sectors, TPH was well positioned to take advantage.
“With robust and market-proven product offering, we hope to benefit from the aforesaid growth drivers of the economy. Our skills base remains intact and we are therefore confident of brighter business prospects in the outlook period,” said TPH.
TPH markets and supports machinery and vehicle units. The company’s divisions include Farmec, Puzey & Payne, Barzem, Northmec and Manica Road Investments.
Farmec holds franchises for Massey Ferguson, Perkins and implements brands for Monosem, Kongskilde Vicon, Howard and Drotsky while Puzey & Payne handles Peugeot, Mazda, Mitsubishi, Volkswagen and Audi vehicles.