eBusiness Weekly
BH24 Reporter
HARARE – Industrial holdings group, TSL Limited’s revenue for the year ended October 2017 rose 7 percent to $50 million ahead of same period last year on mixed performances across the board.
Operating profit at $7 million was 24 percent above prior year levels while profit before tax jumped 70 percent to $6, 4 million. The increase was 50 percent before taking into account a $0, 5 million reduction in fair value of biological assets in the prior year as a result of the new requirements of international accounting standards.
“Overall, group performance was solid, reflecting the diversity of the group’s operations,” said TSL.
TSL however indicated the operating environment was challenging with tobacco volumes impacted due to the incessant rains that hit the country last year which resulted in a 7 percent drop in national output to 189 kilograms.
But the agriculture business performed well with a 37 percent increase in turnover and a significant increase in profitability compared to prior year on the back of expansion in distribution footprint and good rains. Tobacco related business, especially the sales floors, maintained dominance in the auctioning of independent crop with a 60 percent market share.
The logistics business was negatively impacted by the general low volumes in the cargo, inland ports and distribution divisions. Delays in movement of bulk commodities such as fertilisers also had an adverse impact on revenues. Performance of the real estate cluster was “satisfactory” despite the increase in voids and margin compression experienced in the sector as a whole.
In the outlook, TSL says will continue working on its auctioning system to attract more independent and contract tobacco.The group is also working on its warehouse management system which should enhance the quality and efficiency in handling services to different clients. TSL declared a dividend of 0, 45 cents a share.
