ART Holdings says it expects to record a loss weighed down by discontinued operation of one of its divisions, Fleximail.
In a trading update, ART said it will record a loss for the year which is will be significantly lower than that recorded in 2010.
Art is the holding company of Kadoma Board and Paper Mills, Eversharp, Chloride, Intertrade, Softex, Battery Express and National Waste Collections.
“Shareholders of Art Holdings are advised that ART Holdings’ 2011 annual results are expected to be below expectation. Despite an improvement in the business performance in the first half of the year, the performance in the second half was below expectations,” said ART.
“The majority of the loss emanates from the discontinued Fleximail division. All costs relating to the discontinuance of the operation were brought to account in the year, including retrenchment costs and impairment of assets.”
ART chief executive officer Richard Zirobwa told an AGM in February the company was in a position to achieve a turnover of $36 million to September 2011 depending “largely how the company will deal with the debt issue”.