Going forward Seed Co said it was looking forward to a year of growth in the new markets and positive margin growth in existing regional markets in spite of the challenges being faced in Zimbabwe.
The group said with its well balanced stocks it was well positioned to supply the customer needs in the various markets and will continue to focus on improving both quality and production capacity in new markets.
During the period under review, the group suffered a loss before tax of US$9 million which is says its expect to reverse in the second half of the year with the commencement of the main selling season.
“Group margins are targeted to go up to expected levels as seed sales commence in the second half of the year,” company secretary John Matorofa said.
He said the current assets at US$110 million were slightly lower than the prior year end figure reflecting current year intake of inventories and delayed sales off take and the slow movement in government debtors.
“Borrowings are up US$19 million compared to prior year end due to the funding of current yea end seed purchase which were at a significantly lower level than in prior year, while the main selling season it still yet to start,” Matorofa said.
Seed Co said its finance charges doubled as compared to the same period last year due to carryover borrowings used to finance the stocks.
“The major debtors have been paying very slowly in Zimbabwe due to the tight liquidity. This has had an adverse effect on the prevailing interest rates on the market,” he said
Post published in: Business