HARARE, March 12 (The Source) – CFI reported an 87 percent increase in profit before tax to $2,8 million in the five months to February compared to $1,5 million in the same period last year while revenue grew by a third.
Revenue rose 33 percent to $29,9 million compared to $22,4 million achieved in the comparable period last year. Retail and farming divisions contributed 96 percent and 4 percent respectively to total turnover. Margins increased by a marginal 1 percent on prior year while year to date expenses increased by 18 percent on increased business activity in the period.
Other income increased to $1,9 million from $1,6 million in the same period last year due to property related recoveries.
Borrowings decreased by $1,2 million in the period.
The Glenara Estate is expected to break even in the second quarter after a $1 million recapitalisation.
“The estate (Glenara Estate) is projected to break even in the second quarter, and thereafter remain profitable for the rest of the year on the back of favourable impact of the Estate’s $1 million capitalisation. The estate should post its first profit since 2009 in the current year,” acting chief executive Shingi Chibanguza told shareholders at the annual general meeting.
The company was suspended from trading on the ZSE effective 2 January this year, but chairperson Itai Pasi said the company is engaging the local bourse on the issue.
Pasi said the group expects to have Victoria Foods and Crest Poultry group out of judicial management as soon as the group agrees a way forward with the creditors.
Victoria Foods and Crest Poultry group were placed under judicial management in September 2016.
The AGM was not without drama after it turned out that the financial report circulated to shareholders had not been signed by the directors and the auditors.
Representatives of major shareholder Stalap Investments, an investment vehicle for Zimre Holdings and the National Social Security Authority, walked out after auditors Deloitte & Touche said that they had made changes to the notes on the financial report, which was eventually signed.
Their request for adjournment to study the changes was rejected after 53 percent of the shareholders voted to proceed with the AGM.
Zimre chief executive Stanley Kudenga said the CFI board was exhibiting the same corporate governance weaknesses as the previous Stalap-dominated board, which was ousted last year.
Messina Investments, in concert with other parties, holds 42 percent in CFI, making it the largest shareholder while Stalap owns 41 percent.