adminrecorded in discontinued operations.
During the period under review, ART disposed of unprofitable Fleximail Malawi, AT Intertrade, Chloride Malawi and Fleximail Zambia.
Discontinued operations contributed US$2,6 million to the loss for the year, with the bulk attributed to the closure of Fleximail divisions.
ART said the Fleximail loss comprised US$265 000 retrenchment costs and asset writedowns of US$525 000. Major assets had been sold by the end of the year.
The group plunged to a loss despite revenue increasing 20 percent to US$30 million, having turned around last year’s operating loss into marginal profit.
As a result of the loss, ART recorded basic loss per share of US0,62c, but the performance was better compared to a basic loss per share of US1,67c last year.
Commenting on the group’s financial performance, chairman Mr Passmore Matupire said the fact that asset disposals did not bear fruit left the company with high debt risk.
“Asset disposal initiatives which had been embarked on did not bear fruit and the group still carries high debt risk,” he said. “The board is actively pursuing other alternatives to restructure debt into longer term instruments.”
The group’s short-term debt for the period under review stood at US$3,5 million. The firm had paid almost US$1 million in finance costs during the year.
Going forward, the group will focus on manufacturing, batteries and distribution, tissue-making and converting and ink-based stationery manufacturing. Focus will also be placed on adequately funding profitable units.
Revenue in the battery division increased by 27 percent, but the division still recorded US$560 000 before tax loss with the Chloride factory contributing US$1,5 million.
Chloride Zambia performed well after recording US$616 000 profit before tax from US$410 000 that was achieved in the comparative period last year.
ART said battery volumes in Zambia grew 17 percent on strong economic recovery and expansion of the company’s distribution network across that country.
Chloride Zimbabwe recorded a disappointing performance, although turnover grew 32 percent, whereas gross margins fell from 24 percent in 2010 to 19 percent while operating costs increased 20 percent, causing the reported loss.
Kadoma Tissue Mill achieved profit before tax of US$33 803, which was an improvement, compared with US$79 755 loss recorded over the same period last year.
Softex recorded a profit before tax attributable to ART of US$14 799, a result significantly lower than last year’s profits of US$130 000. Although turnover rose 20 percent gross margins declined from
28 percent to 24 percent.
Tissue sales volumes increased by 7 percent, with a marginal increase recorded in capacity utilisation from 36 percent last year to 40 percent this year.Eversharp’s results were affected by poor market performance, resulting in a loss before tax of US$164 405, having done better last year at US$224 664.
Turnover increased by 6 percent while gross margin improved from 24 percent in 2010 to 29 percent as a result of reduction of the lower margin exports.
The division suffered from imitation products in regional markets of Zimbabwe, Malawi and Mozambique, with sales this year remaining stagnant. The division is seen benefiting from increased demand early next year.
National Waste Collection only managed to break even, but it was an improved performance after the division posted a US$70 000 loss last year. The plantations division posted US$785 000 and generated US$122 000.
Online Reporter