HomeBusinessChemco reduces losses

Chemco reduces losses

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LISTED agro concern Chemco Holdings Limited reduced its loss to $380 000 in the full year ended October 31 2013 from the 1,1 million recorded in the same period the previous year owing to improved revenue inflows.

OWN CORRESPONDENT

Group revenue on the period improved to $4,4 million from $3,4 million recorded in the comparative period which saw the significant reduction of the losses the company has been experiencing for the past few years.

“Group revenue recovered in the second half of the financial year, surpassing the previous year by 27%, and the benefits of the restructuring exercise continued to filter through, with the operating loss for the year dropping 83% from the previous year,” said the company in a financial statement accompanying its results.

Chemco said the signing on of new customers and attainment of new product registrations improved revenue in its Agricura division.

Trade in Chemco shares, however, remained suspended on the Zimbabwe Stock Exchange and the company said plans for the delisting were at an advanced stage with the whole exercise expected to be completed by April 2014.

The company recently announced plans to convert a debt owed to TSL Limited into equity. Consequently, TSL which is owed around $2 million, will increase its shareholding to 81, 64% in the agro-focused group.

The transaction awaits shareholder approval at an extraordinary general meeting to be held next month.

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