Starafrica loses millions


SUGAR refinery, starafricacorporation, has reported a $3,2 million loss for the six months to September 30 2014 compared to another loss of $5,2 million incurred during the same period last year.


According to its unaudited financial results released yesterday, the group’s chairman, Joe Mutizwa, said the period under review was
fraught with challenges associated with a contracting economy, liquidity constraints and interrupted supply of utilities.

“Production was adversely affected by the plant shutdown due to implementation of the plant upgrade. Sales volumes were also adversely impacted by low production volumes,” Mutizwa said.

Mutizwa revealed that the group had continued to report significant losses in the past five years with a net loss for the year ended March 31 2014 of $12,2 million as well $16,4 million in 2013.

He said the total liabilities exceeded total assets by $26,4million and current liabilities exceed current assets by $36,6 million.

The group’s loss before tax from continuing operations was $3,7 million compared to $4,1 million in the previous year.

Discontinued operations reported a profit before tax of $571 482 compared to a loss of $1,1 million last year.

Finance costs for the year under review were $2,2 million compared to $2,8 million in 2013.

Mutizwa said the group’s borrowing exceeded the limits set in the Articles of Association by $39,8 million.

He said the company remains confident that the next financial year would see a positive performance once the upgraded plant at Goldstar Sugars Harare is fully functional.

The group did not declare dividends due to poor performance.