HARARE, November 18 (The Source) – Cable manufacturer Cafca on Friday on Friday said its revenue for the full-year to September dropped by nearly 40 percent to $18,1 million from $29,3 million last year.
Operating profit slumped to $757,196 compared to $2,4 million last year while profit before tax dropped to $678,028 from $2,4 million.
The company scaled down operations by a third, from 300 tonnes to 200 tonnes monthly production, dropping costs from $700,000 to $500,000 per month.
“The reduction in working capacity resulted in a turnaround in borrowings from a net borrowed position of $680,523 to a net positive bank balance of $1,473,583,” said Cafca secretary, Caroline Kangara in a statement accompanying the results.
Turnover dropped from $29,3 million to $18,1 million after the company stopped exports to South Africa.
Apart from supplying the local market, the company exports to Mozambique and Zambia.
The company did not declare a dividend citing the need to keep cash reserves.