adminThe Zimbabwe Stock Exchange listed group posted a net profit of US$6,3 million the previous year. Shareholder funds also took a knock as basic earnings per share dipped to US$0,81 from US$2,80 the previous year.
The decline in net profit, however, came against the backdrop of improved gross earnings which increased in the period to US$45 million, from US$38,1 million in 2011.
“The pleasing operating performance was weighed down by losses incurred by the agro-chemicals associate companies amounting to US$2,7 million versus a break-even position recorded for the year to 31 December 2011,” TA Holdings said in its financials.
Sable Chemicals and Zimbabwe Fertiliser Company, which make up the agro-chemicals division, suffered from high tariffs and low product demand respectively.
Investment income slumped to US$2,2 million from US$5,7 million.
“The reduction in investment income was largely due to the fact that the 2011 investment income was boosted by unrealised fair value gains of US$3,8 million, arising from the revaluation of a commercial building,” TA Holdings said.
The group, however, said other divisions such as hotel and insurance improved their performance on the back of an improved RevPar (Revenue per Available Rooms) and improved underwriting profits respectively.
In the outlook, TA Holdings said its insurance business was expected to register “yet another solid underwriting performance” while a growth in RevPar would drive the hotel business. — New Ziana.
Online Reporter