adminOnly 39 percent-owned TA Holdings traded in the black.
In a statement on the financial period for the first six months of the year, Masawara said TA posted US$995 000 profit after tax.
“The group incurred a loss after tax U$4,2 million for the half-year compared to a profit after tax of US$1,7 million during the corresponding period in the previous year. The profit in the prior year included a US$3,2 million gain on the bargain purchase of Zuva Petroleum,” said Masawara.
While TA achieved marginal profitability, a US$2,4 million loss in agro-chemicals associate firms and a US$2,8 million decline in rental income weighed down its performance.
TA had seen operating profit rise by 460 percent to US$2,8 million, driven by strong performance in all insurance companies, but largely those operating in Zimbabwe.
Masawara Energy share of the group loss after tax for the period under review amounted to US$1,5 million compared with US$3 million in the comparative period last year.
The prior year comparatives are from the acquisition date for Zuva Petroleum assets of April 1 2011 to 30 June 2011 and included
Masawara’s share of gain on bargain purchase of the joint venture amounting to US$3,2 million.
This was after volumes in the aviation sector fell by 47 percent compared to the comparative period year, due to the fact that main customer, Air Zimbabwe, not embarking on international flights for a good part of the current period.
In the interim period to June 30 2012 the Telerix incurred a loss of US$2,8 million against US$1,5 million last year. Masawara’s share of loss was US$1,4 million compared with US$763,000 in the interim to June 2011.
Masawara Plc said this performance was in line with expectations, due to the fixed operating expenditure incurred for the WiMAX network, and costs related to the testing, marketing and launching of the WiMAX network.
Joina City posted a loss of US$76 000 from US$117 000 loss last year. The loss was primarily due to maintenance costs incurred on electrical installations as a result of power surges, and bad debts provided for during the period amounting to US$51 000 from US$82 000 in 2011.
The increase in revenue did not translate to a profit as the operating costs increased from the previous reporting period. Improved profitability is expected in the fourth quarter due to various initiatives undertaken or to be introduced later in the year.
Masawara Plc expects better performance in TA after resumption of production at Sable Chemicals and continued recovery of insurance companies in Zimbabwe.
The refurbishment of Zimbabwe hotels has begun and is expected to be complete by the end of 2013. The hotel refurbishment, together with the opening of a conference facility in Harare, is expected to increase hotel revenue.
The process of identifying new operators for Zuva’s sites is continuing. Completion of this process is expected to result in reduced site running costs and increased profitability. Zuva will be restructured at a commercial level, resulting in growth in revenue and a return to profitability. Rebranding of assets will be done in the fourth quarter.
Joina City has seen overall occupancy increase to 72 percent from 63 percent, a trend expected to continue in the second half. Retail occupancy remained at 90 percent.
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