M&R is listed on the Zimbabwe Stock Exchange (ZSE) and is currently chaired by business tycoon, Paddy Zhanda. The amount could not be established as the British Embassy refused to say how much M&R is owed, only acknowledging that it knew about “the dispute”.
The British Ambassador to Zimbabwe, Mark Canning, said in a written response : “Murray & Roberts were contracted by Mace International Limited, not the United Kingdom’s Foreign and Commonwealth Office, for the construction of the British Embassy building in Harare. We are, however, aware that the companies are currently in dispute. However, that is a matter for them.”
M&R Chairman, Zhanda, who is also a Zanu (PF) Member of Parliament for Goromonzi, has told shareholders that his company is “suing the British Government”. The construction firm, among the few listed on the local bourse, has a market capitalisation of $40 391 550.90. Its share price currently stands at $0.17.
Zhanda said : “Contracting recorded revenue of $6 521 645 and profit after tax of $102 870. Revenue increased by 106 percent compared to the same period last year. The debt on the New British Embassy contract is still being pursued through a legal process led by our lawyers in London. Recovery through this process will take longer than initially anticipated.”
He said M&R had disposed of one of its subsidiaries, Promat (Malawi) Pvt Limited – but at a loss of some $263 684. “New markets and products which were an essential element in our strategy to achieve growth and create value for our stakeholders this year have been slow in taking off,” Zhanda said.
For the period ending December 31, 2010, M&R recorded revenue and profit after tax of some $12 876 618 and $349 837, respectively. The revenue generated by continuing operations increased by 17 percent compared to the same period last year. M&R directors include tycoon Zhanda (Chairman), ABC Chinake, former diplomat Stanley Mangoma, G Mullany, M Sibanda, T Fowler, and M Tsoka who is the Executive Director of the construction firm.
Post published in: Manufacturing