The company’s consolidated net sales declined by 15,3 percent to US$33,5 million. The decline was attributed to fall in PG Merchandising volumes and the non consolidation of Manica Board and Doors (MDB) a subsidiary in which PG Industries Zimbabwe’s shareholding was reduced from 60 percent to 27,9 percent.
Despite the decline in gross turnover, gross profits improved by US$753 118 to US$9,7 million due to improved product mix at PG Merchandising and increased efficiencies and throughput at Zimtile.
Gross operating costs declined by 7,5 percent or US$1,2 million. The loss before associate (MBD) was US$3,3 million from US$5,8 million. The loss before associate amounted to US$959 415 resulting in loss before tax and finance charges at US$2,7 million from US$1,6 million remained prohibitively high, the loss before tax if US$7 million was US$485 846 lower than prior year. The tax charge of US$935 473 compared to the credit of US$1,9 million in 2011 is the result of capping the deferred tax asset expected to be recovered in the near future. This resulted in loss after tax increasing to US$7,9 million from US$5,7 million
At the end of the period, current liabilities exceeded current assets by US$6,8 million as the group continued to face working capital constraints.
“These conditions give rise to a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern and therefore it may able unable to realize its assets and discharge its liabilities in the ordinary course of business,” said the group in its results statement.
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