PG to lay off staff

Business
PG HOLDINGS Limited plans to reduce its staff compliment by 25% in the third quarter of this year, a company official has said.

PG HOLDINGS Limited plans to reduce its staff compliment by 25% in the third quarter of this year, a company official has said.

Tarisai Mandizha

Speaking at the company’s annual general meeting last week, PG chief executive officer Hillary Munyati said negotiations were now at an advanced stage and would be concluded in the third quarter.

“We are in the process of reducing staff levels by 25% and negotiations are at advanced stage,” Munyati said.

The group recorded a 21% increase in sales to $14,3 million in the first five months of the year ending May 31 as compared to the same period last year.

Munyati said despite the economy continuing to show stability and potential for growth, as evidenced by the declining inflation in 2012 to 2,9% down from 4,9% in 2011, there were still significant challenges in the economy.

He said improved performance had been achieved against a background of low consumer demand.

Munyati said the group had maintained overall gross profit while expenses had gone up 7%.

At PG Building Supplies, sales increased by 28%while at Zimtile they went up by 47%.

He said stocks had improved, but were still far from satisfactory. He, however, said Zimtile had positioned itself as a trusted brand and would remain competitive.

PG Timbers sales were down 9% due to the group’s decision to focus mainly on project-driven sales.

PG Glass sales surged by 34% and margins were maintained while Mozambique was 6% ahead.

Munyati also said the group had reduced its shareholding in Manica Board and Door with the proceeds used as additional capital to enhance business.

He said there had been no progress in selling properties identified as excess to the group because of the prevailing environment. “There is no progress on sales due to poor liquidity constraints on the market.”