Harare - CFI Holdings Limited a diversified conglomerate predominantly involved in agro-industrial processing, retailing, irrigations services, retailing and property management and development says during the 5 months to February 2019 it has managed to repay RTGS$1.1 million worth of borrowings.

The diversified conglomerate has been struggling for profitability since dollarization, making accumulative losses of more than $36 million by FY17.

As at March 31, 2015 Group borrowings stood at $18,3 million compared to $2,1 million the prior year.

CFI Holdings Ltd has been saddled with a huge debt overhang and in 2015 the Group swapped its 834-hectare Langford Estate in Harare for the cancellation of a US$16 million debt to Fidelity Life.

In a trading update at the Group’s 23^rd AGM in the capital on Tuesday Acting CEO Shingirayi Chibanguza said, “The Group repaid RTGS$1.1 million worth of borrowings during the period, leaving a nominal RTGS$312 000 as at end of February 2019 (outside loans owing under JV arrangements).

He added that the Group also advanced a loan of RTGS$2.2 million to Agrifoods at the end of prior year and this earned the Group a net finance income of RTGS$79 000 for the 5 months to end February 2019.

In September 2016 the Group’s board placed under Judicial Management Victoria Foods and Crest Poultry Group after the High Court gave the nod to the group’s application for voluntary placement.

Upon the provisional judiciary management, the firm had been operating below capacity and failed to recapitalise.

Chibanguza told shareholders that the Group’s performance to date is in line with the budget and the Group continues to recover from the many previous years of corruption and mismanagement.

The Group’s turnover for the five months to February 2018 increased by 33 percent to US$29,9 million compared to US$22,4 million in the corresponding prior period. Of the total turnover, retail and farming divisions contributed 96 percent and 4 percent respectively. Margins increased by a marginal 1 percent over prior year. Year-to-year expenses increased by 18 percent due to increased business activities in the period.

Group borrowings declined by US$1,2 million due to the PTA Bank loan repayment during the second quarter.

For FY 18 the Group’s turnover increased by 44 percent to $61.3 million compared to $42.5 million achieved in the prior period. Of the total turnover, the Retail operations contributed 95 percent compared to 94.1 percent in 2017 and farming operations contributed 5 percent compared to 5.9 percent the prior period.

The company is currently suspended from trading on the ZSE pending further investigations into irregularities in the agro-industrial group. It was also suspended from trading for failure to publish its financials for the year ended September 30, 2015 despite being granted permission to report them a month after the deadline.

Reports indicate that management pleaded with the ZSE to be allowed to release the results by January 31, 2016, which was granted. But the company failed to meet that new deadline. Attempts to get another extension to March 31, 2016 failed.

Listed companies are supposed to report their earnings within three months of their half-year or year-end trading period.

Equity Axis News