adminIn a statement accompanying the group’s unaudited results for the half year to 30 June, the company said the board had approved a proposal to sell unutilised property and its remaining share in an associate company.
The company expected to raise $5,15 million from the properties while the sale of a share in the associate company would bring in $4,35 million.
Zimbabwe Stock Exchange listed PG industries posted a loss of $2,7 million in the year under review, down from $3,11 million in the corresponding period last year.
The company’s revenue fell 16 percent to $15,2 million from $18,2 million due to non-consolidation of results from Manica Board and Doors and a decline in sales volumes in the merchandising division.
PG Industries lost its controlling stake in Manica Board and Doors after failing to follow through a rights offer, resulting in its stake being whittled to 27,9 percent from 60 percent.
The company said sales in the merchandising division, which provided 69 percent of group revenue, fell by 10 percent.
“PG building supplies stores were not adequately stocked, resulting in significant decline in sales volumes.”
It said a new roofing tile factory was commissioned at Zimtile and volumes had started picking up while the glass division did not perform well due failure to source adequate volumes of glass.
PG said it was looking to the informal sector for its growth prospects.
“Domestic demand will continue to be negatively affected by liquidity shortages in the economy.
“The informal sector, however, remains vibrant.
“Growth of the informal sector represents opportunities for the group,” said the company.
Online Reporter