HARARE, January 27 (The Source) – Agro-Industrial concern TSL reported a three percent drop in revenue to $47.2 million in the full year to October 31, 2016 after the group’s logistics and trading operations performed poorly.
Operating profit was down by 17 percent to $5,6 million from $6,8 million in the previous period as margins fell across all business units in response to the tough operating environment.
However, cost containment measures undertaken by the company led to significant savings.
“The Group has been systematically reducing its costs of operations and in the current year this has translated to a saving of $1,4 million”, the group said in a statement accompanying company results.
The group’s profit after tax fell three percent to $ 3,25 million from $3,15 million last year. Net asset value per share was up 5 percent to 21 cents.
During the period, the group reduced its borrowings by 12 percent to $11,541 million from $13,042 million in the previous year resulting in an improved gearing ratio of 15 percent from 19 percent.
The agriculture business contributed most of the group’s revenue as TSL dominated the tobacco market.
Going forward, the company said it will seek out opportunities in its agriculture, logistics and real estate operations to enhance growth whilst containing costs.
The board declared a final dividend of 0,3 cents per share.