eBusiness Weekly
HARARE – CFI Holdings recorded a net profit jump of over 300 percent to ZWL$7.3 million for the half-year ended 31 March 2019, riding on improved performance by its retail division.
The group, which also has subsidiaries in farming, milling and properties, was suspended from trading on the Zimbabwe Stock Exchange (ZSE) in January last year for breaching a number of listing rules, and is in talks for a possible return.
Some of the group’s subsidiaries are currently under judicial management and have seen an improvement in the performance that will likely result in them exiting the process.
During the six months, CFI Holdings – the parent company for Farm & City Centre, Vetco, Victoria Foods, Hubbard Zimbabwe, Crest Poultry Group, Agrifoods, Maitlands among others, saw its revenues jump to ZWL$47 million from ZWL$33 million in the previous comparable period.
“Group turnover for the half-year increased by 43.2 percent from ZWL$33 million to ZWL$47.2 million, with the retail operations contributing 96 percent and farming operations contributing 4 percent of the total turnover,” said acting group chairperson, Itai Valerie Pasi.
Last year, retail contributed 95 percent and farming division four percent.
The group’s earnings before interest, taxes, depreciation and amortisation also surged to ZWL$11 million from ZWL$3.7 million.
Pasi said the firm was in talks with “new management at the Zimbabwe Stock Exchange and is hopeful that all outstanding issues will be resolved to enable lifting of the suspension placed on trading the company’s shares.”
The suspension related to, among others governance issues,failure to appoint a chairperson, chief executive and finance director, which was precipitated by shareholder squabbles.
The acting CFI Holdings chairperson said the company’s entities under judicial management – AgriFoods, Victoria Foods and Crest Poultry Group – operated profitably during the period.
“The group has since concluded a scheme of arrangement for the Crest Poultry Group, which is on course to exit judicial management before the end of the financial year,” she said, adding Victoria Foods creditors were also being paid to allow the company to also exit judicial management.
During the period, CFI Holdings repaid loans amounting to ZWL$1.2 million and is left to clear ZWL$300 000.
Pasi said efforts were also underway to recapitalise Farm & City as well as improve the profitability of Glenara Estates farming business. – New Ziana
