Conglomerate TA Holdings Limited recorded a 15% increase in total revenue for the group to $14,8 million in the first quarter ended March 31 2012, compared to the same period last year.
The surge was mainly driven by revenue from local operations, a senior official said.
Speaking at the company annual general meeting, the group chief executive officer Gavin Sainsbury said the group’s insurance gross written premiums grew by 11% with both Zimbabwean and external operations registering profitable margins on an excess budget.
TA is the parent company of short-term insurance firm Zimnat Lion.
“Both Zimbabwe and outside Zimbabwe insurance companies were profitable,” Sainsbury said.
He said revenue for the group’s local hotel units increased by 10% compared to the same period last year, mainly driven by improved revenue per available rooms (RevPar) and occupancy rates.
Botswana’s Cresta Marakanelo, revenue increased by 4%. However, the performance was negatively impacted by reduced arrivals at the Mowana Safari Lodge.
Profitability was also weighed down by the group’s agro-chemicals division production, which was 78% below last year’s levels due to intermittent power cuts between February and March.
The group’s fertiliser making unit, ZFC’s operations, were hamstrung by liquidity constraints.
“The company could not import ammonia due to working capital constraints.
“The company is on track to implement enhanced ammonia importation by year end,” Sainsbury said.
He, however, said there had been a slight improvement in operations.
In its 2011 annual report, TA said it was in the process of refurbishing its tanker fleet so as to change its business model from ammonia production to full importation of ammonia model.
The company recently completed a feasibility study for the conversion of coal gas as an alternative to electricity for the generation of ammonia at Sable Chemicals.
TA Holdings’ insurance business recorded a profit after tax of $9,1 million for the year ended December 31 2011 compared to $3,3 million in the previous year.
Meanwhile, the group has embarked on refurbishment work at Cresta Zimbabwe, a development which could improve RevPar.