ERF in profit
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ERF Holdings is back in profit. A net loss of £1.56 million in 1982/83 has been turned into a net profit of £677,000 for the financial year ended March 31, 1984.
Although the company's gross turnover in 1983/84 at £60.64 million was slightly lower than the previous year (£62.57m), full year results published last week show that trading profit before tax and interest rose to £1.695 million, compared with £20,000 in 1982/83.
Chairman and managing director Peter Foden said that they reflected a significant increase in the commercial vehicle division's profitability, together with a further profit boost from ERF Plastics. This was particularly encouraging in light of only a limited improvement in trading conditions for heavy vehicles in the UK during 1983.
"Export markets were difficult due to high interest rates and political and economic problems in the Middle East," said Mr Foden. "Our South African company results were disappointing, but with an improvement coming through in the second half of the year."
Although substantial discounting in the home market continues to restrict margins and competition from overseas manufacturers remains extremely strong, Mr Foden's statement reports that orders for 38 tonne tractive units and 16 tonne rigids exceeded expectations.
Looking to the future, Mr Foden said that the outlook for 1984/85 appeared more encouraging and the introduction of a new competitive model range later this summer should help increase ERF's market share.