Harare - Listed crocodile skin producer and seller Padenga Holdings which was weaned off Innscor eight years ago said it is now looking at diversifying its business after running a focused model, for all these past years.
In a cautionary statement directed to shareholders released on Tuesday, the company advised shareholders to exercise caution in the trading of its shares as it is considering a proposed transaction to diversify its business through investment into an alternative export-oriented business.
The company however highlighted that materialization of the deal will not dilute existing shareholders which implies that the purchase consideration will be settled via the balance sheet. It is also likely that the business to be acquired will be in the agriculture space.
Padenga is the only ZSE top 10 counter to have consistently maintained a year to gain in 2018. The counter is presently trading 13.2 percent ahead of its year opening price level. This compares to a loss of 22 percent for the overall Top 10 Index.
Only Padenga and Old Mutual Limited are in the positive on a year to date scale. Investors have largely found comfort in Padenga shares due to the underlying business’ forex earning ability. All of the company’s sales are in forex and that counters and mitigate the present risks inherent in Zimbabwe’s economy.
In 2018 Padenga reported a profit after tax position of $12.8 million coming from a sales level of $30.2million.
The overall performance was an improvement on the prior year and was driven by operating efficiencies, firm prices and fiscal discipline which resulted in reduced cost of sales.
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