Office Automation achieved positive growth in sales of multi-function devices and, in particular, of printers. Our Solutions operation, however, returned disappointing results. Market share grew marginally but turnover was slightly down on 2010. This is explained by extremely competitive market conditions and the continuing strength of the rand.
In December 2010 the business took out extended exchange-rate forward cover, which had a positive impact on results. Operating profit for the year rose 13% on 2010.
Strong growth was achieved in the area of managed print services (MPS). There is a growing demand for such services, especially from larger corporate clients. To meet this growing opportunity, head count at the MPS team was doubled this year.
Office Automation continued to enjoy exceptional success in bidding for, and winning, tenders. This year some 60% of all tender bids were successful. Office Automation management is acutely aware, however, that its BBBEE contributor status will increasingly impact on its ability to keep winning public-sector tenders and has set itself the objective of improving from a Level 5 BBBEE contributor to Level 4. Nashua Kopano will endeavour to improve from its current Level 4 to Level 3.
Organisational and management changes within the Nashua group and at Office Automation created widespread uncertainty this year, not only amongst staff but amongst franchisees as well. These are now being addressed. The announcement that Office Automation would continue as an independent operation – announced after the year-end – was extremely well received by the channel.
In 2011 four franchises were repurchased with Cape Town and Durban being the largest. Office Automation now has effective control over 60% of its channel. It is envisaged that a further three franchises will be bought back, but that franchisees will continue to be of critical importance to Office Automation’s future success.
The business embarked on an ISO 14001 environmental management certification. Office Automation envisages offering a much more sophisticated recycling service, which will entail stripping out and recycling different components including plastics and electronic components. |
