Companies post encouraging results

improved operational and profitable performances of firms that have been able to rein in costs, raise output and enhance efficiencies.
This was evident in the financial results firms released to the market since the beginning of this month with most of them declaring dividends.
But it is interesting also to note that traditional good performers from the Zimbabwe dollar currency era seem to have to come to the party.
Admittedly, Zimbabwe is far from ideal macro-economic stability that would allow firms to compete purely on innovation and many other individual advantages, but traditional good performers have struck the right cord.
Earlier in this column I indicated it was time companies found ways to escape economic constraints around elusive lines of credit and high cost of finance for profitability and bring something to the table for the shareholder.
Most firms that have released financial results have not just recorded increases in revenue and profitability, but reported huge growth in these respects.
Despite attendant challenges still affecting business and the economy, firms have started showing good results from their strategic plans, which give hope that economic conditions will bring even better results.
A brief analysis of the financial results published so far points to a better financial outlook for most firms this year, despite a myriad of challenges still stalking companies such as expensive funding and high cost of utilities.
Among firms that have done well is Innscor Africa Limited, which saw revenue rise 22 percent to US$256 million as operating profit jumped 51 percent to US$26 million.
Innscor Africa also announced encouraging results from its regional operations in Kenya, Zambia, Ghana and Senegal noting revenue growth and better efficiencies.
Its associate, Colcom, also did well as it recorded 17 percent increase in revenue to US$24,4 million, but before tax profit was unchanged at US$3,1 million in the half year to December 31, 2011. The full year could be better.
Basic earnings per share rose 12 percent on prior year to 1,50 cents per share and as a sign of confidence in the economy declared an interim dividend.
The same trend was notable in Turnall, which registered an increase of 111 percent in turnover to US$34,9 million while after tax profits jumped 105 percent.
It has also emerged that agro-focused firms and those with investments in the agriculture sector are most certain to achieve desired results.
Turnall testified in this regard as the asbestos manufacturer, which recorded a 30 percent jump in sales, attributed the performance to the strong showing in the agriculture sector, especially the production of tobacco.
The asbestos maker reported that volumes rose 57 percent to 67 371 tonnes as after tax profit increased by 112 percent in the full year to December to US$3,4 million.
As such, the directors of the company saw it fit to declare a USc0,173 dividend and this definitely goes a long way in showing that things are finally looking up.
And if Turnall did well due to the good performance of the fast recovering agricultural sector who would fault agro-processors such as Natfoods for raking in US$94 million for the 12 months to December 2010.
The Zimbabwe Stock Exchange listed firm saw operating profit recover from a loss position of US$165 000 in 2009 to post operating profit of US$4,6 million.
In the same vein earnings per share recovered from minus USc1,65 per share to a positive Usc4,14 per share as recovered shareholder value lost the prior year.
The list of good performers is long, but it will be unjust not to mention that strong growth in volumes and returns were achieved in other agriculture focused counters such as Dairibord and farm implements maker Zimplow.
But it does not mean that the good financial performance in the 2010 financial year was confined to agriculture related operations only as financial entities such as the BancABC Group were able to post good profits.
BancABC Zimbabwe posted Botswana Pula 27 million in after tax profits, which was an improvement of 43 percent on the BWP9 million achieved the prior year.
The group recorded operating profit of BWP111 million for the full year to December 31, 2010 on the back of after tax profits of BWP 11 million in Zambia, BWP16 million in Tanzania and BWP 23 million in Mozambique.
For the period under review BancABC group declared a BWP0,10 dividend and while the financial results included contribution from regional operations Zimbabwe weighed in with the largest chunk on profits.
Listed publisher Zimbabwe Newspapers Group has also recovered from a US$2 million loss to record a US$625 000 after tax profit in the full year to December, which supports the notion that many firms could be out of the woods.
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