Turnover in the period was close to budget at $9,1 million compared with $8 million in the same quarter last year, which the company added included business operations that had been discontinued. Going forward, Art said it will be focusing all its energies on tissue making and tissue converting as well as battery manufacturing and battery distribution.
The lead furnace at Chloride had been commissioned two months behind schedule, but was currently turning in the stock of old batteries into lead, which would lead to improve margins going forward. At the group’s briefing for full year results in December last year, CEO Richard Zirobwa said Art should achieve turnover of $36 million in the year to September 30 2011 and a “modest profit”, although this depends on whether the group is able to realise $7,3 million from the sale of its Mutare assets and pay down debt.
The company said plans were still underway to reduce the $8,5 million debt through the disposal of $7,3 million of assets. The agreement for the sale of the land and buildings was 80% completed while they had a firm offer for the forest estates.
Post published in: Economy