Categories: Stories

Ariston halts FAVCO operations after a $1.7 million loss

Agricultural concern Ariston Holdings slipped to an after tax loss of $1.7 million in the full-year to December from a profit of  $1.5 million the previous year on declining revenues and ballooning finance costs and stopped operations at its trade division to stem the haemorrhage.

Revenue during the year declined by six percent to $11. 8 million while finance costs more than trippled from $890 000 to $2.9 million.

The group, with an array of horticulture interests, said yesterday that it had stopped operations at its loss making trade division FAVCO which had made cumulative losses of $7.2 million since adoption of the multicurrency regime in 2009. The cost of unwinding this division amounted $3.4million.

The group’s borrowings increased from $2.8 million to $10 million with a weighted average cost of borrowings of 18.8 percent per annum.

Ariston’s Southdown Estates which is engaged in growing tea, avocados, macadamia nuts and bananas contributed $9 million to revenue from continuing operations, accounting for 76 percent of total group revenue. It swung to an operating profit of $2.2 million from an operating loss of $45 000 last year.

Kent Estates revenue fell by 52 percent to $1.1 million resulting in an operating loss of $1.1 million.

The group’s Claremont Estates, which concentrates on growing Pome and stone fruit, recorded a 16 percent increase in revenue to $2 million driven by increased yields. Its operating loss narrowed from $900 000 the previous year to $300 000 in 2015.-The Source

(33 VIEWS)

This post was last modified on %s = human-readable time difference 2:25 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024