HARARE, August 27 (The Source) – Buildings materials maker Turnall is on the path to recovery after recording a net profit of $400,000 in the six months to June from a loss position of $2,6 million over the same period last year aided by tighter cost controls and higher sales, the company said on Thursday.
Revenue at $14 million was nine percent above last year while sales volumes grew eight percent to 29,435 tonnes. The sales were mostly in cash, helping improve its liquidity position to fund its operations.
It reduced administration costs by 53 percent to $1,3 million while selling and distribution costs were 10 percent below the prior period.
Early this year, the company started importing cheaper asbestos fibre from Russia, realising 20 percent savings on previous imports and lowering expenses lowered by 23 percent. The Russian fibre also improved the quality of the finished product, the company said.
“The effects of the reduction in the cost of the main raw material will only be felt in the second half of the year due to logistical considerations,” Turnall said in a statement.
The company had also built a ‘firm’ exports order book which should be realised in the second half of the year, it added.
Turnall also reduced its short-term borrowings to $4 million from $7,6 million while its long-term book stands at $1,6 million, owed to FBC Bank.
Of the short-term debt, $1,2 million is owed to FBC Bank, $2,8 to BancABC and $19,000 to the now defunct AfrAsia Bank.
Earnings per share recovered to 0,08 cents from a loss position of 0,54 cents last year.