Chronicle Editor
GENERAL Beltings Holdings, facing a going concern problems, incurred loss after tax of $254 230 resulting in an accumulated loss of $3,787 million in the half year to June 2017.
The conveyor belts manufacturer’s liabilities exceeded assets by $10 million at as June 30, 2017. GB directors said they had concluded technical partnership agreements whose overall effect is expected to ensure return to profitability in the near future. The firm, however, reported volumes for the six months to June 30, 2017 rose 93 percent to 412 tonnes subsequently pushing revenue up.
Revenue for the period at $2 million was 24 percent ahead of same period last year. This is despite a 38 percent downward price reduction at the rubber division. During the period under review, the business environment was characterised by low local demand, but the firming prices of commodities helped boost business from the mining sector.
“The trading environment was characterised by weak domestic demand and foreign currency shortages which negatively affected the business,” said group chairman, Mr Godfrey Nhemachena.
“Global commodity prices remained steady while the mining sector buoyed demand for the company’s products,” he said.
Gross profit for the period jumped 14 percent to $0,535 million on incremental benefits accruing from the technical partnerships and the positive responses to the strategic turnaround implemented in the last three years.
Operating costs were in line with prior year with savings of three percent achieved although there was increased activity. Financing costs were 11 percent higher than the same period last year at $81 000 due to improved market penetration. — BH24
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