Improved local demand and sales mix of products enhance CAFCA’s profitability

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    Harare – CAFCA Limited, manufacturer and supplier of cables and allied products for the transmission and distribution of electrical energy and information primarily in Southern and Central Africa, says basic shares and earnings for the year ended September 30 2018 will be approximately 10.5 US $ cents per share which is above 2.21 US $ cents per share of 2017.

    In a trading statement on Monday, CAFCA said it is good corporate governance to publish a trading statement if a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by a meaningful percentage from those of the corresponding period.

    Strong local demand of the company’s products coupled with a change in the sales mix enhanced its profitability.

    “Profitability has been improved by strong local demand and a change in sales mix from aluminium to copper products.

    “The high level of finished goods brought forward from the previous year have also contributed and allowed us to hold our prices throughout the year.

    “The prior year was adversely affected by a volume decrease that resulted in break-even months until the cost base was significantly reduced – this cost base has since been maintained.”

    CAFCA said the financial information on which the statement is based has not been reviewed and reported on by the company’s external auditors, hence shareholders are advised to exercise caution in the trading of their CAFCA shares.

    The Company has been profitable since last year, registering a 73.48 percent increase in profit after tax to $726 213 in the year ended September 30 from the comparable period on the back of a revenue increase that was complemented by a lower cost base.

    However, earlier this year the company said it is battling to raise US$4 million in cash to replace its ageing equipment and procure of raw materials to fully take advantage of the government’s local industry protection policies against imports.

    Established in 1947 and listed under the Zimbabwe Stock Exchange, Johannesburg and London Stock Exchanges, CAFCA is part of CBI Electric African Cables (RSA), which in turn is owned by Reunert Limited (RSA).

    It offers a toll manufacturing option to all its customers who can access key raw materials such as copper and aluminium, which are converted at the cost of value addition.

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