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ZIMBABWE Stock Exchange-listed concern Phoenix Consolidated Industries Limited recorded a US$228 000 loss for the six months to April 30 2013 compared to a loss of US$477 000 in the previous period. This included net finance charges of US$330 000 and depreciation of US$249 000.
In the financial results for the six months to April 30 2013, the company said revenues had decreased by 12,8 percent from April last year to the period under review.
Phoenix said demand for their product had remained strong although sales had been restricted by stringent credit control resulting in the decrease in revenue.
The company added that major hardware outlets had been unable to purchase significant volumes within their credit terms due to the liquidity crunch facing most companies.
The loss incurred during the period contributed to the reduction in the net worth of the company by US$228 000.
Analysts say the company’s results were lukewarm despite cutting its first half losses by more than half.
The steel and allied division continued to weigh down on financial performance with management, this time around, attributing it to reduced margins on the back of a firm rand and stiff competition on the domestic market. The plastic and allied products unit, on the other hand, maintained its good performance ending the period under review in profit.
However, the company incurred an operating profit of US$102 000 from a previous loss of US$252 000 while gross profit stood at US$1 111 000 declining from the previous US$1 180 000.
No dividend was declared and the basic loss per share stood at US0,26 cents
The company said it could benefit from the expected upturn in the economy as they had been approached regarding the potential purchase of one of its operating units which could reduce borrowings by up to US$2 million.
Online Reporter