In F11, the group spent US$32.3m on expansion, with US$9m spent on the bread operations, US$2,7m Colcom, US$12,6m in Fast Foods and US$10m on Spar openings and closings. The balance of US$10,93m was spent on maintenance.
Borrowing costs on nearly US$40m of debt were between 10%-11%, mostly in 365 days, although the group had some 4-year paper.
Turning to a breakdown of the F11 results, Schonken noted that 79% of revenue had come from Zimbabwe ($408.6 mln) compared with 75% last year, while the region eased to 21% (US$107.5m) from 25%. However, on the pretax line, Zimbabwe at US$34.48m eased to 83% from 87% due to the Spar losses, while Regional with US$6.85m rose to 17% from 13% as all operations were profitable.
In Zimbabwe, Retail reported a 19% rise to US$175.2m from US$147.54m, Milling and Manufacturing rose 46% to US$132.1m from US$90.4m, while Distribution and Wholesale ws up 55% at US$96.99m vs US$62.45m.
Group finance director Julian Schonken said some of the losses could be explained away through the openings and closing undertaken in the year, but added that in essence it was a “new business” for Innscor. “Costs were bloated and we had the wrong costs.”
He said turnovers at Groombridge and Borrowdale were in excess of US$1m a month and he was confident the division would be turned around into a profit during the course of the year.
Brown added the group would look out for opportunities, and was looking to maintain current levels of borrowings, with gearing at 17.5% of shareholders equity, reduced to US$124.5m fromUS$132.7m following the demerger of Padenga. “We have a much more efficient balance sheet,” Schonken added.
Post published in: News