adminHarare Bureau
ARISTON Holdings says there has been significant uplift in output on all farms with a lot more potential going forward as the group’s rehabilitation programme begins to pay off.Giving an update of operations at the group’s annual general meeting on Friday, chief executive Paul Spear said there had been significant growth in operations since the recapitalisation in 2011.
Revenue since the $8 million injection had grown 16 percent to $17,1 million while there had been an increase in consumables and bearer biological assets to 1,088 percent at the end of its financial year in 2013.
Spear said the growth in revenue for the current financial year is expected to be much higher. Capital expenditure had grown 416 percent to $3,23 million from $627,000 in 2011.
“We were aggressive on the capex but we are slowing down in the year ahead.”
Debt had risen 7,165 percent in the two-year period but equity had also gone up 9,573 percent.
With all this in the mix, Spear said there had been significant improvement in the operations. Prospects for another good tea season with much production and improved quality are expected.
Made tea volumes are currently 55 percent above prior year and 20 percent above budget. Spear said the Macadamia fruit was very encouraging and increased yield and quality were also expected.
The group had restructured its trading division Favco with restructuring 90 percent complete.
“The new structure now revolves around the marketing of produce from the farms,” said Mr Spear adding that integration with the farms was now at 60 percent.
Spear said that the group was working hard to make sure they are getting the best results but the shortage of reliable power created a lot of challenges.
He said: “It’s not something we can’t deal with in terms of backup but getting reliable power is expensive.”
The group was however confident that the situation would improve if the micro-hydro projects around Manicaland are completed.
At the AGM, directors fees for the past financial year were approved at $49,350 while auditors fees of $120,000 were also given the nod.
Chairman Robbie Mupawose introduced former Barclays Zimbabwe managing director Alex Jongwe as a new board member.
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