adminfirm said to better align actual valuations with book values, significant write-offs related to intangible assets, goodwill and non-core investments were undertaken during the period under review.
Cambria said operating profit, prior to adjustments for costs, losses and gains it does not anticipate in future, stood at US$4,2 million.
But adjustments for costs associated with subsidiary ForgetMeNot Africa, the Lonrho management agreement, non-compete agreement and related charges, ZSE listing preparation fees, “one-off” charges associated with transition from Lonrho and a one-off gain on investment, cuts the operating loss to US$1,4 million.
While the losses appeared modest in the face of improving financial performance towards profitability a prudent review of Cambria’s assets by a new board increased operating costs by US$10,8 million.
The new board for Cambria, previously LonZim, decided to review asset values for more prudent reflection on the balance sheet after former shareholders of the company decided to sell the firm.
During the period under review, revenues and gross profit of Cambria grew to US$6,4 million (2011 US$4,8 million) and US$3,6 million (2011 US$2,5 million) respectively, representing corresponding growth of 32 and 42 percent over the same period last year.
Combined gross profit of Cambria’s five core companies was US$3,5 million during the half year to February 2012, compared to US$2,1 million last year, representing an increase of 64 percent.
As at February 29, the company’s net assets totalled US$36,2 million (2011 US$52,1 million) and market capitalisation of US$16,4 million.
Cambria’s assets, after the various write-offs undertaken during the period under review, are almost entirely tangible (US$40,3 million).
Cambria’s core portfolio consists of the Payserv (100 percent), Leopard Rock Hotel (100 percent), Millchem (100 percent), Celsys (60 percent) and CES (100 percent).
The Leopard Rock Hotel is a four-star hotel and resort located in the Eastern Highlands while Payserv, previously trading as Paynet Group, provides electronic data interchange switching services.
Celsys has become arguably the best-equipped printer in Zimbabwe and commands leading market positions in security and commercial printing.
Millchem, previously trading as Millpal, is a value-added chemicals distributor with leading market positions in the local market whereas CES provides a wide range of IT products and services.
Cambria also holds 100 percent stake in LonZim Air, which owns two aircraft and 51 percent of messaging technology provider ForgetMeNot Africa deployed at nine operators across Africa.
Chief executive officer Mr Edzo Wisman was upbeat about developments in the economy citing the 9,3 percent Gross Domestic Product growth in 2011 as testimony. Forecast GDP growth for 2012 is 9,4 percent.
“Barring the first few months of 2012, Zimbabwe’s economic growth continued at a pace, well beyond the growth of many of its peers in Sub-Saharan Africa, a region itself already growing faster than most other parts of the world,” said Mr Wisman.
During this period of high GDP growth Zimbabwe’s inflation remained low at an annualised 4,4 percent for the period under review, comparing well with inflation levels in, for example, the US (3,3 percent) and South Africa (6,2 percent).
Online Reporter