Turnall targets US$300m turnover

Government increases infrastructure support to improve sanitation.
Commenting on the future outlook of the company, FBC Securities said given the position of Turnall in the industry this Government initiative would directly benefit the company.

“Turnall is strategically positioned to exploit opportunities from the expected demand to be derived from the US dollar salaries.
“Company products are intimately related to total disposable incomes and disposable incomes are determined by the state of the economy,” said FBC Securities. Zimbabwe’s economy is expected to grow by 9,3 percent in 2011 and disposable incomes are expected to increase and more people are likely to channel their incomes towards property development.

Housing backlogs both locally and in the region, need for safe water and sanitation facilities pose extensive business opportunities for the company.
Turnall is involved in the production and construction materials comprising pantile, partitioning boards, ceiling boards, fascia boards, tiles and roofing sheets.
The company is also involved in the production of pressure and sewer pipes and pipe accessories.

Turnall is also expected to boost revenue through its coalition with FBC Building Society, which is a division of the holding company to supply building materials for the development of infrastructure projects.

FBC Holdings owns 59 percent of Turnall, which it gained after FBC Bank settled a US$8 million SMM Holdings debt from the Africa Export and Import Bank. SMM was the controlling shareholder in Turnall and had pledged shares of the manufacturer of building and piping products.

FBC Bank also gained 28 percent of Steelnet that they have already disposed and 19 percent in another listed entity General Beltings.
In the first six months ended June 30, 2011 Turnall made US$1,3 million in profits representing a 33 percent increase from US$984 527 recorded in the comparable period last year.
Sales volumes for the interim amounted to 36 000 tonnes up 26 percent from the prior period.

Local authorities projects on sewer and water reticulation also resulted in a 128 percent growth in pipe sales volumes. To this extent, turnover grew by 63 percent to US$22,2 million, with exports contributing less than 1 percent of total turnover due to the asbestos ban in Mozambique and South Africa.
Cost of sales grew by 68 percent due to the high cost of imported chrysolite at US$1 200/tonne against the US$650/tonne which the company used to pay locally.