The company said it’s turnover in the four months to October was 5 percent below budget at US$19 million from US$19,9 million last year but was 40 percent above the same period last year.
At the AGM chairman Paddington Zhanda who has been chairman of the group for ten year. resigned from his post after he cease to be independent following Zumbani Capital’s 47 percent acquisition of M & R South Africa shares.
M &R said Brian Mabiza was leaving his position as the FD at the end of December while former Zimplats CE Greg Sebborn was appointed as chairman to replace Zhanda who resigned from his post
Speaking at the AGM, M & R chief executive Stewart Mangoma said the group would achieve its original budget for the full year while year on year growth had shown significant growth.
Mangoma noted there had been a slowdown in the mining sector from a tendering point of view and not a lot had happened in the four months. “However the project pipeline is looking reasonably good as such we expect the current trajectory to remain”.
“The restructuring of the balance sheet had started in earnest with short term debt of US$2,5 million to fund capex. The group had secured a 3 year loan facility of US$3,5 million, which they are yet to use and were organizing facilities with a longer tenor,” said Mangoma.
He said the company was on course to achieve its objective of having a strong balance sheet and low gearing.
In terms of divisional performance, the construction order book is currently at US$27,3 million with the sector benefitting from the tendering activity from government activity 50 percent of the order book is government while the rest is for the mining sector.
The restructuring at Proplastics had resulted in improved production efficiencies as the group had benchmarked its costs with international standards. Mangoma said at present the order book was at US$3,3 million. Production tonnage in the 4 month period was 32 percent above last year.
This had resulted in capacity utilisation of around 60 percent from 45 percent.
Mangoma noted that the market had been vibrant at the beginning of the year but had slowed down towards the holiday season. Electricity remained one of the major drags on operations.
Post published in: Business