GUD Holdings records $101.8m profit on back of Automotive division’s success
Expanding its Ryco filter business into light trucks and commercial vehicles has helped parts and appliances manufacturer GUD Holdings to lift its net profit to $101.8 million for the 2017-18 financial year.
Company revenues were also higher, rising 11 per cent to $396.7 million in 2017-18 – which GUD says came entirely from its Automotive divisions, which include Ryco Group, Brown & Watson International and Wesfil Australia.
The result was a major improvement on the loss of $7.3 million it made in the 2016-17 financial year.
Outgoing managing director Jonathan Ling says he is pleased with what he says is the “continuing strong performance of our automotive group”.
“We are expecting further improved performance across all areas of the group in the next financial year… I am pleased to be leaving the business in a strong financial and strategic position.”
Ryco, which comprises businesses that provide aftermarket parts, had seen growth from expanding the variety of parts produced and expanding into new market segments where it did not previously compete.
It also pursued what it calls its “workshop conquest program”, where the company tries to convert end users to using its brand of air, fuel and oil filters – adding 400 new workshops over the course of the 2017-18 financial year.
“With its recent focus on growth opportunities such as in the heavy duty segment, the conquest activity is also covering truck workshops and service centres,” the company says.
“Each year Ryco introduces hundreds of new filters… in 2018-19, Ryco plans to introduce around 300 new filters in pursuit of this objective.”
The acquisition of engine management and electronic replacement parts company IM Group in 2017 – and the 800 new products launched over the course of the year – also contributed to the 16 per cent growth of the company’s Automotive products arm – of which 9 per cent was organic growth.
GUD subsidiary Brown & Watson company Narva also got a boost after entering the original equipment segment last year, winning a headlamp supply contract with Kenworth Trucks and supplying lights and light bars to Toyota Parts and Accessories.