Chronicle Editor
Senior Business Writer
LISTED cables manufacturer Cafca Limited directors are confident that the firm will continue in existence and operate for the foreseeable future as a going concern citing the historical cost revenue which increased in 2023 to $109,6 billion compared to $12,2 billion recorded during the 2022 financial year.
The increase was mainly attributable to the increased selling prices due to inflationary adjustments.
The firm manufactures and supplies cable and allied products for the transmission and distribution of electronic energy and information in Southern and Central Africa.
According to the 2023 Integrated Annual Report, the profitability of the Cafca improved with the company reporting a historical costs profit before income tax of $59,7 billion for the year ended September 30, 2023, compared to a profit for the year of $4,9 billion for the same period last year.
The company secured overdraft and loan facilities amounting to $15 billion from local financial institutions to fund working capital requirements.
This, it said will alleviate the raw material challenges that the company is facing.
“Accordingly, the directors believe that it is appropriate for the financial statements to be prepared on a going concern basis,” reads part of the report.
Managing director Mr Rob Webster noted that the period under review, copper cable volume sales increased by nine percent which more than compensated for the drop in total volumes from 2 502 tonnes to 2 483 tonnes.
He said the impact of hyperinflation required the company to invest $35,2 billion into stock to maintain the same finished goods stockholding.
Bongani Ndlovu
Online Reporter