TA Holdings profit declines

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ZIMBABWE Stock Exchange-listed group TA Holdings profit for the full year to December 2012 declined to $3,2 million weighed down by a rise in net claims and the group’s agrochemicals unit. In 2011 the company posted a $6,2 million profit.

Report by Business Reporter

Basic earnings per share plummeted to 0,80c from 2,81c.

Growth in net earned premium and hotel revenue saw the group’s revenue climb to $72 million from $67 million.

The group’s investment income was also cut by half to $3 million on the back of the lacklustre performance of the local bourse.

The group’s offshore operations which include hotels and insurance in Botswana and Uganda, continued to outshine local units as seen by growth in after tax profit which rose to $4,4 million from $3,6 million.

TA’s local units however slid into a $1,1 million from a $2,6 million profit achieved in prior comparative year.

Net claims during the period under review rose to $22 million from $19 million recorded in the comparative prior year.

Gross written premiums for Zimnat Life, the group’s local insurance arm rose by 59% compared to the same period last year largely as a result of an increase in individual life and employee benefits business.

Notwithstanding this, an improved revenue per available room saw Cresta Zimbabwe grow its profit before tax.

The group also announced that plans are underway to refurbish Sprayview Hotel as it positions ahead of the United Nations World Tourism Organisation General Assembly to be jointly hosted by Zimbabwe and Zambia this August.

Sable chemicals and ZFC, the group’s agrochemicals units, both incurred losses citing low production of ammonium nitrate and liquidity constraints.

“Ammounium nitrate production was 28% lower than what was produced largely due to . . . the suspension of electricity supply in the first half of the year, together with consequential mechanical breakdowns,” said the company in a statement accompanying the audited financial results.

“Overall the company lost 124 days of production due to this event . . . Liquidity in the agricultural sector contributed during the year which meant that there was insufficient working capital to import the required volumes of ammonia.”