HARARE, August 18 (The Source) – Buildings materials maker Turnall Holdings on Friday said cash flow and production volumes are showing signs of recovery in the second half of the year after a ‘difficult’ first half period.
Acting managing director Roselyn Chisveto told shareholders at the company’s annual general meeting, that the company’s sales volumes are also on an upward curve, pointing to a good second half performance.
“The second half, in particular the last two months have witnessed significant improvements with enhanced cashflows supporting the business and the company is able to defend market share,” she said.
In the first half of the year, Chisveto said the company was able to negotiate with banks to facilitate efficient payments to foreign suppliers to sustain production going forward.
“Management continues to position the business in a way that will enable the company to regain lost volumes in the second half. Sales volumes have been following an upward trend, pointing to a good second half,” she said.
The company’s export strategy remains key and currently Zambia remains the most viable market for asbestos cement roofing. She said the export growth strategy is being driven by a desire to mitigate the foreign currency shortages.
Chisveto said the company is banking on the various housing projects as well as prospects of a good agricultural season for growth.
In 2016, Turnall consolidated its asbestos cement operations in Bulawayo plant to gain from economies of scale while the Harare asbestos plant was placed under care and maintenance. In addition, the company also realigned its staff requirements with the remodelled business and retrenched excess staff, including management.