Sundaymail Editor
PG INDUSTRIES local units are presently operating at sub-optimal levels as the construction materials manufacturer and service provider chokes from working capital constraints.
The firm’s net sales in the half year ended June 30 2014 plunged 39 percent to US$10,3 million from the same period a year earlier as gross margins remained unchanged at 27 percent.
PG Industries is currently seeking to address working capital challenges through a composite scheme of arrangement with concurrent creditors, secured lenders, secured creditors and debenture holders.
Shareholders unanimously approved the scheme in March this year.
The deal, however, is still waiting for High Court approval.
“This has resulted in delays in restructuring of the balance sheet per the circular to shareholders. Delays in release of new capital negatively impacted the group’s working capital position,” said Mr Francis Dzanya, PG’s acting chairman.
The company saw its operating loss jumping 34 percent to US$2,6 million compared to US$1,95 million a year earlier.
Loss before interest tax also skyrocketed to US$3,6 million from US$842 245 in the corresponding period a year ago.
The group is bullish on prospects in the second half of the year, buoyed by a number of supply arrangements that would result in the delivery of significant volumes of products such as timber, roofing products, paints and hardware products.
The arrangement is also expected to result in a product mix that includes local, regional and internationally sourced products.
Online Reporter