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TSL posts $5,6m profit

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TSL Limited, a diversified group with interest in agro chemicals, logistics, transports and tobacco, posted a $5,6 million profit for the year ended October 31, 2012 compared to $1,7 million during the same period the previous year. This was driven by a restructuring exercise which reduced overheads.

TSL Limited, a diversified group with interest in agro chemicals, logistics, transports and tobacco, posted a $5,6 million profit for the year ended October 31, 2012 compared to $1,7 million during the same period the previous year. This was driven by a restructuring exercise which reduced overheads. REPORT BY VICTORIA MTOMBA BUSINESS REPORTER

In its financial statement, TSL said the liquidity crunch that characterised 2012 affected growth in capacity utilisation throughout the business sector.

“TSL’s revenue growth was 1% shy of double digit in an economy that saw the inflation stable at below 5%. Operating profit increased fivefold as a result of tighter control on cost, restructuring of the group and disposal of a loss-making unit,” TSL said.

Revenue rose to $31,9 million during the period under review from $29,4 million in 2011, while profit from operations stood at $5,5 million during the period under review. Total assets for the group stood at $72,8 million.

The group’s restructuring and rationalisation exercise reduced the cost base to sustainable levels.

“The group is in a stronger position following the restructuring which saw operating costs reduce to sustainable levels. There was an improvement in cash generation which was deployed to support working capital requirements of the group’s new initiatives,” TSL said.

TSL delisted Agricor from the Zimbabwe Stock Exchange in 2000 and quoted Chemco Holdings in its place through an unbundling process that has literally failed to unlock shareholder value.

Chemco last year closed two loss- making divisions Chemco Transport and Farm-A-Rama and Agpy through a management buy-out. TSL said the momentum from new initiatives launched in 2012 was expected to intensify with the resultant revenues reflecting in the 2013 results.

“Significant revenue growth is expected from tobacco operations, supplies of agro inputs and property rationalisation and expansion. Cost rationalisation will continue with a focus on matching resources to the group’s optimal needs. The group will continue its initiatives to enhance its human skills,” the group said.