Africa-Press – Zimbabwe. CONSTRUCTION firm, Turnall Holdings Limited, is resizing the business to improve profitability and cash flows as it seeks to exit a loss-making position, the company has said.
In its financial year ended December 31, 2024, Turnall widened its loss-making position to US$2,92 million owing to an increase in inflation-driven operating expenses.
This was from a loss of US$1,5 million recorded in the comparative prior year.
The poor performance left Turnall with US$1,13 for every dollar of short-term debt for 2024, down 48,14% from the prior year, threatening the firm’s liquidity position.
These inflationary pressures knocked down net cash flow from financing activities to US$4,94 million during the period under review, compared to the prior year’s comparative of US$6,67 million.
“The group looks forward to improved profitability and cash flows following the resizing of the business,” Turnall managing director Ian Bagshaw said in the firm’s 2024 annual report.
“Management is focusing on maximising revenue through increased sales activity and containment of costs to ensure that the cost base is matched with business activity and revenue.”
He said the business was looking to improve the production capacities of the tile and the Bulawayo sheeting plants.
The Bulawayo sheeting plant, in particular, is being converted to non-asbestos cement (non-AC) production.
According to Turnall, once the conversion is complete, the Bulawayo machine will focus on producing non-AC products. The new Harare plant will focus on AC production.
Bagshaw said a significant portion of the company’s AC sales volumes comes from Harare, and therefore the installation of the Harare plant was going to cut transportation costs from Bulawayo to Harare.
“The civil works for the installation of the new Harare sheeting plant are in progress, and the plant is expected to be operational by the beginning of the third quarter of 2025,” he said.
“The machine has a capacity of 210 tonnes per day and is double the current output coming from Bulawayo.”
Capital expenditure for 2024 was US$3,2 million compared to US$567 927 in the prior year, which was mainly aimed at improving production efficiencies.
These efficiencies include the construction of the new fibre cement plant that is currently underway.
“The group has a net current asset position of US$1,6 million (PY: US$6,98 million). Included in current liabilities is a shareholder loan and bank facilities amounting to US$5,5 million. The funding from the shareholder was channelled mainly towards the new fibre cement plant, which is currently under construction in Harare,” Turnall said.
“The civil works for the new fibre cement plant are at an advanced stage, and the plant is expected to be operational from the third quarter of 2025. The facilities from the banks were used to fund the working capital requirements of the business.”
The fibre cement plant is being financed by Turnall shareholders.
Turnall revealed that the group has secured adequate raw materials to meet production demand in its current financial year.
“The group will focus on improving its product offering to enhance competitiveness and grow its revenue base; on improving its production efficiencies; continue to implement cost containment measures to improve the viability of the business, and continue to source and ensure adequate raw materials are available to meet production demand,” Turnall said.
Turnall Holdings Limited is a manufacturing company that specialises in fibre cement roofing materials and pipes, as well as concrete roofing products.
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