adminbusiness units to focus on core activities.
In a statement accompanying its results for the halfyear ended February 28, LonZim chairman Mr David Lenigas said the company was now in a position to capitalise on the country’s economic recovery.
“The restructure process is complete, and Celsys enters the new financial year in a much stronger position, with clear objectives and focused business models.
“The company is now wellpositioned to grow as the economy builds,” Mr Lenigas said.
The restructuring drive saw the closing down of operations including, the marketing and web design division, the Nokia, HTC and mobile pay phone division as well as the disposal of the Information Technology Software division (Sophos Distribution).
Last year, analysts Amstel Securities noted that inefficiencies at Celsys were posing the “biggest operational challenge” for the LonZim Group.
The restructuring process began in March last year, and in June of the same year Celsys was able to operate without cash support from LonZim for the first time since acquisition.
Celsys says it will now focus on developing its core activities in the commercial and security print industry and ATM supply and leasing.
As a result of the restructuring programme, turnover for the company remained static yearonyear.
Margins during the period were maintained at 7 percent.
Celsys posted a total comprehensive loss for the year of US$496 085.
According to Celsys, a review of the costs and benefits of the restructured firm demonstrates a 26 percent reduction in costs resulting in overheads being reduced to 44 percent of turnover compared to 58 percent for the comparative period.
LonZim acquired a 60 percent stake in the conglomerate business earlier in 2007, and may benefit from the subsidiary’s improved operation as the Zimbabwean economy continues on a recovery path.
Online Reporter