In a trading update to shareholders for the year ended 31 March 2010, the group posted a loss of US$5,1 million for the period under review after achieving a turnover of US$23,8 million.
The company said it was in the process of raising US$15 million to recapitalise operations, boost productivity and retire debt.PG has so far raised US$4,5 million for working capital and will use the remainder for capital projects.
“The group has embarked on a capital fund raising exercise for up to US$15 million to settle creditors, replenish stock, retire some expensive borrowings and to provide refurbishment or plant replacement at the concrete, glass and board operations,” reads part of the statement accompanying the trading update.
PG noted that capacity utilisation remained at 10 per cent for its manufacturing division adding that the recapitalisation would result in complete replacement of the old Harare tile plant with new technology, which will significantly reduce the unit cost of production and a refurbishment of the Bulawayo plant.
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