adminMasawara Plc incurred a loss after tax of $4,6 million for the year ended December 31 last year comparable to $16.1 million recorded the previous year. Masawara is a Jersey-registered investment company focussed on acquiring interests in companies and projects based in Zimbabwe and the southern African region.In the period under review, the group’s net total revenue amounted to $101,719 million from $ 9,575 million acquired the previous year.
Total net for the group’s insurance claims and operating expenses increased to $121,304 million from $16,459 million reported in the prior period.
The group recorded an overall increase in cash and cash equivalents of $9.3 million from the previous year.
In a statement on Monday, Masawara chairman David Suratgar said the loss was primarily as a result of “a $12,5 million impairment of the Telerix Communications Private Limited
“Telerix” loan notes in 2015 (2014: $2,8 million) and a $2,0 million operating loss from Sable Chemical Industries (“Sable”) from June 25 2015 when the group took control of the company and therefore started consolidating it as a subsidiary.”
Mr Suratgar said the impairment of the Telerix loan notes was prudent in light of uncertainties of when the business would be in a position to fully repay the loans.
“The future of this business looks positive on the back of the acquisition by Dandemutande, Telerix’s operating company, of the iWay Africa Zimbabwe (Private) Limited and Africa Online (Private) Limited customers and selected assets and liabilities in July 2015, as well as the commencement of a management contract awarded to Gondwana International Networks (Pty) Limited, a Pan-African IT specialist based in South Africa, which now co-owns Dandemutande following the transaction,” he said.
During the year, Sable went through fundamental changes, following the cessation of bulk power supplies to its Kwekwe plant, which it was using for the production of ammonia through electrolysis.
Going forward the group chairman said, this year would be for further consolidation.
“Continued emphasis is on restructuring and optimisation of the investment portfolio to unlock value and create a platform for future growth, a focus on current investments and ensuring the companies are better positioned to grow market share,” he said. — New Ziana.
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