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Apex proceeds with disposal of units

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Apex Corporation of Zimbabwe is proceeding with the disposal of its units as it continues to review its business model which it said was not viable and outdated. In 2010, the company sold Marondera Foundry and Philpott and Collins, while McMeekan Foundry and Precision Grinders were sold in the 2011 financial year. In a trading […]

Apex Corporation of Zimbabwe is proceeding with the disposal of its units as it continues to review its business model which it said was not viable and outdated.

In 2010, the company sold Marondera Foundry and Philpott and Collins, while McMeekan Foundry and Precision Grinders were sold in the 2011 financial year.

In a trading update to shareholders, chairman Farai Rwodzi said the group was still pursuing potential buyers for the disposal of Supersonic Property and All Metal Founder.

The disposal process is gathering momentum despite the liquidity crisis and foreign investors reluctance to risk their capital in Zimbabwe, said Rwodzi.

The sale of the Supersonic Property in Bulawayo has been concluded and the sale of All Metal Founders in Bulawayo is at an advanced stage. The Zimcast and McMeekan properties are in the hands of property consultants.

Rwodzi said the cost required to re-equip the remaining business would not justify the potential returns in the current economic environment. In addition, Apex faced major challenges from banks and creditors.

Consequently, your board has made the decision to stem the haemorrhaging and focus on the disposal of the remaining assets so as to clear its current obligations, Rwodzi added.

Apex recorded a turnover of $11,9 million for the year ended October 2011 with $11,6 million attributed to Phoenix Consolidated Industries Limited.

The group recorded an overall loss after taxation of $2,3 million.

Rwodzi said there was lack of activities in the economy, particularly in the mining sector.

Phoenix Consolidated Industries Limited achieved a turnover of $904 000 compared to $680 000 in the previous year.

This translated to a retained profit of $148 000 after depreciation, finance costs and taxation.

Going forward, Rwodzi said following the restructuring of the group, Apex would remain with its controlling stake in Phoenix and Gulliver Consolidated.

Phoenix has forecast an improved 2012 based on marginal improvements in the economy and the liquidity position not worsening.