The business

GRW is a manufacturer of steel and aluminium tankers and specialized liquid containers. Apart from clients in South Africa it also has clients in the UK and Middle East.

Performance

GRW significantly improved results to deliver headline earnings of R5.3 million. It was however a challenging year with 35-40% of tanker sales going to the export market which negatively effected earnings as a result of the strengthening of the Rand. Export volumes are strong, but GRW cannot price competitively in the current market. The local market continued to be depressed. This was however slightly offset by good performance from its second hand tanker sales division which generated attractive margins and profits.

Prospects

GRW is set to benefit from its current restructuring of operations, cost-cutting efforts and the standardisation of its production line which was implemented during the 2010 calendar year. With a strong order book, healthy demand for its tankers and its prospective expansion into the UK, GRW is expecting to show strong revenue and earnings growth.

Financial highlights