Harare - Conveyor belt manufacturer, General Beltings Holdings says overall volumes at 467 metric tonnes for the half year ending June 30, 2018 were 6 percent above prior year same period volumes of 441 metric tonnes with all the units registering growth.
In a statement accompanying the company’s financial results Chairman Mr Godfrey Nhemachena said the demand for the company’s products is mainly driven by the growth experienced in the mining and agricultural sectors.
He said leveraging on the improved operational efficiencies underpinned by consolidated technical alliances and continued policy support, the company is responding effectively by delivering commensurate value propositions to its customers despite accessing limited foreign currency.
In the period under review a significant volume increase of 36 percent was recorded at the rubber Division as the unit benefited from the technical partnerships and improved market positioning.
The Chemicals division volumes increased by 2 percent on prior year with a favourable product mix.
Turnover surged by 25 percent at USD 2.5 million from $2.0 million last year despite a significant outstanding order book due to raw materials constraints.
“During the period under review, a growth of 17 percent was recorded at the Rubber division due to increased throughput while the chemicals division growth of 36 percent was attributable to a favourable product mix.
“Consequently an overall gross profit increase of 28 percent was recorded at USD 688 000. In spite of the inflationary pressures, costs were contained at prior year levels resulting in a decrease of the operating loss by 73 percent at USD 86 000,” said Nhemachena.
He said finance costs at USD 100 000 were 23 percent higher when compared with same period prior year of USD 81 000 due to legacy debt.
Going forward, Nhemachena said the firm order book since the beginning of the year has asserted the company’s market positioning and confidence.
He said the commissioning of a specialised modern mixer at the Rubber division in line with the technical partnership has started to bear fruit through enhanced operational efficiencies and reduced order cycle time.
Additionally, he said programmed plant maintenance is positioning the operating units’ ability to convert orders to meet increased demand.
“It is expected that the order book will remain firm going forward. The conversion of the orders to turnover will however depend on the availability of foreign currency to timeously procure raw materials.
The Zimbabwe Stock Exchange-Listed company said the Board considered the loss position of the business and resolved not to declare a dividend.
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