Speaking at the announcement, group CEO Richard Friedman said the decision was in the best interests of the group. He added that the main reason behind the decision to stop funding Pi Shurlok UK was related to the increasing potential for future losses in this business due to the dramatic decline in future prospects and the very poor economic environment in which it is operating.
This action does not affect the Group's aftermarket subsidiary, CI Automotive nor does it affect its OEM subsidiaries in South Africa. Friedman said the decision will also enable management to focus less on sorting out problems associated with Pi Shurlok UK and more time focusing on opportunities in the Group's aftermarket sector. This sector already accounts for the largest portion of the group's profitability and is extremely well positioned for future growth.
The aftermarket business has gone from strength to strength over the past three years while he results of the OEM businesses have been extremely disappointing for the past few years. These businesses have not fully recovered from the effects of the global meltdown in the automotive industry in late 2007 and 2008.
Contact Charles Smith 083-469-7586
OR Jean Jeffery 082-334-0875
