PGI is listed on the Zimbabwe Stock Exchange (ZSE) and has a market capitalisation of US$8 731 348.23. Its share price currently stands at US$0.02 on the bourse.
PGI Chairman, Frank Lutz, confirmed that his firm was struggling and had made a loss of US$7 573 067 for the period ended December 31, 2010. He said the group, which supplies glass to the construction industry, was forced to “review its business portfolio” by shutting down some firms and going cap in hand to borrow US$11,2 million to recapitalise.
“Recapitalisation of the company towards the end of 2010 enabled Group companies to settle long outstanding liabilities, restructure short-term debts, and start investing in new machinery,” he told worried shareholders. “The Group companies are now in a better position to start contributing positively to shareholder value.”
PGI reviewed business operations closing J & F Harare 4th Street Branch and the rest of the J & F Branches rebranded to PG Building Supplies (Private) Limited or DST (Private) Limited. Messina Timber Traders (Private) Limited ceased operating as a separate business unit.
Lutz said operations were transferred to PG Timbers (Private) Limited. He said branch rationalisation resulted in some branches of PG Building Supplies (Private) Limited and DST (Private) Limited being closed. Lutz told worried shareholders that PGI would now focus on PG merchandising – PG Building Supplies (Private) Limited, DST and PG Timbers (Private) Limited.
Post published in: Economy