After the extremely high production volumes required in the prior period, the main challenge for the past fi nancial year was scaling production down to the reduced requirements of the economic downturn. This had to be done in a controlled way while minimising costs and retaining the skilled staff who will be required when the economy improves.
Our policy of outsourcing component placement enabled us to reduce production without leaving expensive machinery underutilised. Also, because most of the additional staff employed to achieve the production required in the latter part of FY2008 were on short-term contracts, staff reduction was achieved without the need for retrenchments or loss of experienced personnel.
The sharp reduction in sales has left inventories at an unacceptably high level. However excess stock is gradually being consumed by normal sales and we are confi dent that inventories will return to acceptable levels by December 2009 and back to normal by the end of the fi nancial year.
During the year several new products and updated versions of existing products were put into production. These roll outs have been successfully implemented with no disruption to normal production.
Our highest priority, as always, is to manufacture all our products to the highest quality standards demanded by our South African and International customers. This is achieved in part by consistently applying the international benchmark ISO 9001:2000 standard throughout the group.
DigiCore Electronics is confi dent that, as the world economy begins to recover, we will be able to supply the products required by the group for global markets, timeously, at competitive prices and to all required quality and environmental standards.