The impact of COVID 19 to our business will come to a head in the next three months as we have been living off our order banks prior to the closedown of our economy in late March.
Even though our order banks have increased in the last quarter, the commencement on site of the majority of new projects are programmed for next year and this leaves us in a very vulnerable place for the next 3-6 months.
Every effort is being made to secure work for the short and medium terms. Again, we need to really support our sales and estimating team in this most vital and important pursuit.
The programming and scheduling of our work is very important so as to understand in particular our labour requirements are matched to the work which we are undertaking.
The need to vary our hours of work and to use AL/LSL is an important strategy to help in the proper labour utilisation and to control our cost to produce.
I really appreciate your understanding to support our management teams when this issue is raised with you.
2. END OF FINANCIAL YEAR
I can’t believe that we have now arrived at the end of this financial year 19/20. Our Finance team now will finalise our profit and loss statements and balance sheets and I will soon review the complete 12 months financial statements.
There are no surprises as our results have been extremely disappointing up to this point.
G.James remains in a very strong financial position, owning all of its assets which have been paid by all the profits that have been made in our history. Our profitability has been declining from positive to negative and is of the highest concern to me.
The need to manage the efficient use of our resources, employees, materials and assets is again absolutely necessary to keep our costs as low as possible to maximise our best returns.
Please remember that it is very difficult to increase prices in this extremely competitive market.
3. CAPEX PROJECT UPDATE
990 KSD Automated Case Warehouse has now been commissioned and will be passed to production for testing.
8” Press and 3rd Ageing Oven can’t be finally commissioned until overseas technicians can come to Australia.
New office Gold Coast is complete and is awaiting final connection of water for the fire services (we are all awaiting anxiously especially Jeff and his team at the Branch).
Bundaberg Factory new layout is complete.
Lismore office and showroom refurbishing will start on 13 July 2020.
New generation glass processing factory at Campbellfield in Melbourne is continuing with the arrival of machinery and the project will be challenged in the next 12 months with what is happening.
4. NEW YEAR
Even though I’m confronted with a host of challenges and issues I remain absolutely resolved to the turnaround, recovery and the future of G.James’ endeavours.
There will be changes to realise recovery. All that is needed of you, our committed and loyal staff, is to do what is necessary within your control to continue to make G.James a great place to work and to make your mark.
In these trying times, I thank you most sincerely for your efforts and contributions.