General Beltings (GB), a manufacturer of textile reinforced rubber products, is selling its offices in Harare to raise $4 million working capital for the group.
The decision follows failure by GB to access $1 million funding from the $40 million Distressed Marginalised Areas Funds (Dimaf).
Managing director Wilbroad Tsuroh told an annual general meeting in Harare yesterday that the company had been receiving funding from creditors and suppliers, but it was now time to source for alternative funds.
“The board decided that we get funding from Dimaf, but it took us sometime to realise that the funds would not materialise.
“The board has taken a decision to utilise the resources that we have as a company,” Tsuroh said.
“The premises that we are selling are valued at $4,8 million. We have not reached the point of a firm offer.
“There are a number of organisations that have shown interest in this transaction and we are in negotiations.”
Tsuroh said they would want to conclude the deal as soon as possible, as lack of working capital had impacted negatively on the company’s half-year results so far.
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He said company turnover had increased from $3 million in 2009 to $6,3 million last year without an injection of funds from shareholders.
“We are performing 5% below target in terms of volumes from last year and 6% turnover,” he said. “We are still developing our export market.”
Capacity utilisation levels for the company are at 35%. However, Tsuroh could not disclose more details about GB’s performance as it was in a closed period.
GB recorded an operating loss of $1,4 million for the year ended December 2011 down from $1,7 million the previous year while sales volumes declined by 5% to 1 277 tonnes.
The company has other factories in Bulawayo and Rusape. GB subsidiaries include Rubber Division and Chemicals Division.
