adminThe company, which has secured a $4 million contract in South Africa, said its performance would be subdued in the first half due to lack of construction activities.
Managing director Mr John Jere told shareholders at an annual general meeting last week the second half of the year accounted for 60 percent of the firm’s performance.
“Exports into South Africa are going to be key in driving growth. We have now secured a sizeable contract for $4 million for delivery starting June 2012,” he said.
Turnall is exporting to South Africa roofing materials produced at its non-asbestos plant, which was accredited by the South African Bureau of Standards (SABS) last year.
In spite of the deal, Mr Jere said the company’s financial performance in the first half of the year was anticipated to be below last year’s performance.
By end of June, group operating profit is forecast to be $2,4 million, twelve percent below last year while turnover is anticipated to be $18 million, nine percent below the same period last year.
Meanwhile, in the first four months ending April, Turnall recorded a 23 percent jump in operating profit to $1,6 million.
Turnover during the same period was at $12 million, up six percent from last year.
Mr Jere said the agriculture sector, especially construction activities related to tobacco production were the main volume drivers.
Private home construction and informal construction were also attributable for the growth in volumes.
By the end of the four months, volumes were at 20 619 tonnes, up six percent from the same period last year.
“Below par performance came largely from pipes, largely because of funding delays,” he said. — New Ziana.
Online Reporter