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Business Reporter
Zimbabwe focused investment company, Cambria Africa narrowed its loss from continuing operations to $600 000 ($150 000 before legal costs) for the six months to the end of February 29, 2016 compared to a loss of $1,81 million during the same period last year. The decline in the loss was aided by a reduction in Cambria’s central costs for the period by 51,2 percent to $600 000 from $1,23 million for the equivalent period last year.“Excluding legal costs incurred to defend Consilium’s attempts to liquidate Cambria which cost $450 000, central overheads decreased by 87,8 percent to $150 000 from $1,23 million in 2015, underscoring the positive impact of our aggressive overhead reduction strategy,” the company said.
Cambria’s earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations for the period was $35 000.
“Excluding legal costs, which had a significant impact on Cambria’s results for the period, EBITDA from continuing operations was $490 000 in comparison to the EBITDA loss of $1,1 million in the equivalent period last year,” it said.
As a result Cambria said its CEO Mr Samir Shasha decided not to collect compensation including benefits until such time as the cash flow from the Company’s underlying operations supports it.
Similarly, the other directors have not received any compensation or benefits during the period.
Its remaining continuing operations Payserv Africa and Millchem Holdings recorded mixed performances during the period under review.
Payserv recorded a 2,4 percent increase in revenue to $2,58 million from $2,52 million in 2015 while its consolidated EBITDA for the period increased by 25,8 percent to $780 000 from $620 000 in 2015 and profit before tax increased by 78,9 performance to $340 000 from $190 000 in 2015.
Millchem recorded an improvement in its loss before tax by 67,3 percent to a loss of $170 000 from a loss of $520 000 in 2015.
Revenues fell by 46,8 percent to $1,65 million from $3,1 million in 2015 while its EBITDA loss for the period improved by 68,8 percent to $150 000 from $480 000 in 2015.
Cambria said the decrease in Millchem’s loss is mainly attributable to the overhead savings caused by the discontinuance of loss making subsidiaries Millchem Zambia and Millchem Malawi.
The loss-making Zambian operations were disposed by Millchem for $88 000, with effect from September 1, 2015.
The company’s performance was largely affected by the considerable time, cost and energy it took to defend Consilium’s claims for early repayment of its loans which were contractually due on 30 April 2016.
Cambria said that despite Consilium’s attempts which could have led the Company into liquidation, it was able to raise the finance to settle the Consilium loans which were paid in full on the contractual due date.
Apart from the Consilium claim Cambria received net proceeds of $3,3 million from its settlement agreement with Lonrho Limited entered into on September 3, 2015 relating to the Company’s Jet Claims in terms of which Cambria received $4,75 million in full and final settlement of the Jet Claims.
Looking ahead Cambria executive said it would be concentrating on rationalising and simplifying the head office function and central overheads.
“A streamlined head office structure has been implemented which resulted in a reduction of 51,2 percent in central overheads from $1,23 million in the first half of 2015 to $600 000 in this reporting period,” the company said.
Focus will also be on re-establishing key supplier and customer relationships in Millchem and supporting the Payserv management team to continue the good growth in its core markets through an expanded service offering while reducing fees charged to Payserv by the head office Company.
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