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Harare — Investment group TA Holdings last Friday said it will post a loss for the full year ending December 2013, down from a $3,2 million profit the previous year.
TA Holdings is due to release its full year results on April 30, but said in a statement that its struggling associate company, Sable Chemicals, dragged down the entire group.
The group recorded a profit after tax of $2,8 million for the half year ended June 2013, riding on a surge in revenue from its hotel business.
The Zimbabwe Stock Exchange listed group said an impairment charge over the uncertainty of the future returns from Sable Chemicals impacted on profit.
“Consequently, TA Holdings will report a loss for the year ended December 2013.
“The impairment charge did not have an impact on group cash flows,” the group said in a profit warning statement.
Kwekwe-based Sable Chemicals is Zimbabwe’s sole producer of Ammonium Nitrate.
The fertiliser producer is on the hunt for $750 million in capital to invest in new plant and production technologies.
Sable Chemicals is producing fertiliser using the outdated electrolysis method which consumes a lot of power.
Production at the company has only survived on the back of an electricity subsidy from government.
The Industrial Development Corporation (IDC), which jointly owns Sable Chemicals with TA Holdings, last week said raising funds to recapitalise the fertiliser producer was a struggle.
“We have been all over the world in search of funding,” IDC general manager Mike Ndudzo said.
New designs for the plant and production method using coal gasification instead of electrolysis had already been completed, he said.
TA Holdings is a diversified firm with operations in the hospitality, insurance and agrochemicals sectors as well as investment management. — New Ziana.
Online Reporter