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Michael Tome Business Reporter
AGRI-industrial firm CFI Holdings Limited says it expects an improved performance in 2019 following the partial clearance of credit and recapitalisation of Glenara Estates and CFI Retail.
The group has two of its companies placed under judicial management namely Victoria Foods and Crest Poultry Group since September 2016.
Acting group chairperson Itai Pasi said the clearance of RTGS$1,1 million worth of loans will formulate a better performance in the current year owing to reduced costs of borrowing.
“CFI balance sheet is stronger and well positioned to underwrite further growth in the forthcoming year following the recapitalisation of both Glenara Estates and CFI Retail over the last year coupled by reduction in borrowings during the last year.
“The group reduced its gearing by RTGS$ 1,1 million worth of borrowings. This will further reduce borrowing costs in the second half of the year,” said Ms Pasi.
CFI acting group chief executive officer Shingi Chibhanguza indicated that CFI’s performance is set to improve on the account of capital injection to Agrifoods, in addition the firm has managed to cut its debt significantly which will undeniably stimulate performance in the current year.
He alluded that the firm is performing consistent with the set budget free of maladministration as experienced in the previous times.
“Our performance to date is in line with budget and the group continues to recover from the many years of corruption and mismanagement, the group now has a nominal RTGS$312 000 outstanding loans as at end of February 2019.
“The group advanced a loan of RTGS$2,2 million to Agrifoods at the end of prior year and this earned the group a net finance income of RTGS$79 000 for the five months up to February 2019,” said Mr Chibhanguza.
In other developments the group invested RTGS $1,2 million in distribution trucks and branch managers vehicles to assist in enhancing marketing and operational efficiencies.
CFI however incurred a 26 percent surge in expenses for the five months up to February as the group dispensed cushioning allowances to its employees resultant of rising cost of living.
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