Turnall crafts scheme of arrangement with creditors, narrows H1 loss to $295K

Turnall crafts scheme of arrangement with creditors, narrows H1 loss to $295K

HARARE, September 29 (The Source) – Turnall Holdings says it is negotiating with banks to conclude a scheme of arrangement which will see the manufacturer of building materials restructure its debt.  

Acting finance director, Samson Mavende told analysts on Thursday that the scheme of is expected to be complete by December.

“The balance sheet is almost interchanging and because of our net current liability position we want to restructure some of those debts so that there are moved from current to medium or long term,” he said.

“We have been negotiating with all our creditors involved and we have reached an agreement with most of the creditors except the banks. What is left is to agree with banks on how to restructure the loans but we are now at an advanced stage such that we think we should complete it soon by year end”.

Turnall narrowed its net loss for the six months to June by 84 percent from $1,8 million to $295 049 on the back of enhanced cost cutting measures.

Revenue declined from $8,7 million reported in the prior comparable period to $7,7 million as volumes fell by 17 percent to 15,556 tonnes from 18,675 tonnes previously.

Finance costs declined by 8 percent from $608 876 to $555 344 while administrative expenses also declined from $1,3 million to $1,1 million.Selling and distribution expenses declined to $641 640 from $733 008.

Production volumes increased by 18 percent to 16,547 tonnes compared to 13,997 tonnes reported in the same period last year.

The group reported a profit from operations of $0,25 million compared to an operating loss of $1,2 million previously.

Total assets for the group declined from $33,7 million to $32,7 million.

The group did not declare a dividend.