CFI narrows loss from $6.1 million to $273 000

CFI Holdings has narrowed its after-tax loss to $272 784 in the six months to March 31, from a $6.1 million loss incurred in the prior half year-end, supported by the improved performance of its Farm and City unit.

Revenue increased by 30 percent to $24.9 million from $19.1 million recorded in the previous year.

Farm and City contributed 94.3 percent of turnover, from 68 percent previously after raising funds to address working capital constraints during the period.

Acting chairperson, Grace Muradzikwa said Farm and City opened five new branches in the period after recasting itself as an agro-inputs and building materials hardware retailer.

Earnings before interest, tax , depreciation and amortisation (EBITDA) improved to $1.45 million from a negative $4.6 million incurred in the same period previously.

Finance costs declined to $500 000 in the period compared to $700 000 recorded in the comparable period the previous year.

Total assets decreased by 7 percent to $96.5 million from $103.9 million previously.

Victoria Foods and Crest Poultry Group, under administration during the period, are expected to emerge from judicial management in April and July this year, respectively, acting chief executive Timothy Nyika told shareholders at the company’s annual general meeting in March.

The group’s Glenara Estates improved its productivity, profitability and cash flows and is expected to achieve a bumper harvest following good rains received in the current season, Muradzikwa said.

The group will unlock value opportunities from the existing land banks with identified development partners.

The group is also planning to raise capital by way of a rights issue to resuscitate its operations.

“A broader recapitalisation process, including but not limited to rights issue combined with business reorganisation initiatives, is still being pursued,” Muradzikwa said.

Zimre Holdings, which owns 44 percent in the company through its investment vehicle,  Stalap, told analysts that it has plans to increase its stake and recapitalise the entity.- The Source

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