eBusiness Weekly
HARARE – Agro-focused group TSL Limited registered a 4 percent upturn in revenue for the six months to April 30, 2018 to $24, 6 million from $23, 6 million in the prior comparable period.
This was on the back of a “satisfactory” agricultural season.
At $3, 5 million, operating profit was 27 percent above same period last year.
Profit for the period jumped 517 percent to $9, 7 million compared to $1, 5 million in the comparable prior year period.
Management expects its linchpin agriculture subsidiary to continue benefitting from the performance of the sector going forward.
“The tobacco related businesses, are poised to benefit from an increased market share of the national tobacco crop which is expected to be between 10 percent and 15 percent up on prior year with estimates ranging between 210 and 220 million kg along with prices that are expected to be marginally firmer,” said the group in a statement accompanying the results.
During the period under review, TSL disposed of its entire 16, 53 percent stake in Nampak Zimbabwe Limited at a profit of $7, 7 million.
As at half year, $4, 8 million of the proceeds had been distributed as a special dividend to shareholders while $10 million was earmarked for capital projects in the second half of the year.
Net asset value per share increased by 8 percent to 22, 1 cents while the group’s current ratio improved 76 percent to 2, 7 driven by funds from the disposal of its investment in Nampak.
Gearing was reduced to 12 percent from 15 percent as the group watchfully controlled its financial commitments.
The logistics division had an improved first half year performance but foreign currency challenges affected the business. Its revenue remained flat at $6, 9 million.
The vehicle rental – Avis- remained profitable on cost containment in line with the business volumes.
The real estate division registered marginal improvements on increased demand driven by larger tobacco crop.
Despite the challenging operating environment, management remains optimistic and will position business accordingly.
Availability of foreign currency also remains critical for the business although the group anticipates full year results to be ahead of prior year.
