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TSL profit up

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ZIMBABWE Stock Exchange–listed diversified group TSL Limited’s after-tax profit for the half-year to April 2013 rose to $3,1 million from $2,3 million recorded during the same period last year, driven by growth in revenue on the back of a buoyant tobacco season, the company has announced.

Report by Tarisai Mandizha

Attributable earnings per share, according to the company’s unaudited results for the year ending April 30, were up 29% to 0,9 cents as the board resolved to declare an interim dividend of 0,2 cents per share.

Revenue was up 31% to $20 million compared to the same period last year.

Finance costs, however, rose by more than 10 times to $326 000.
TSL chief executive officer Washington Matsaira said the group’s subsidiaries — Propak and Tobacco Sales Floor (TSF) — contributed the bulk of revenue during the period under review.

Revenue generated by Propak, according to the financial results, rose by 44% compared to the same period last year.

“The Tobacco Sales Floor benefited significantly from a bigger national crop which is expected to be 30% up on the previous year,” the company said in a statement.

Matsaira said Propak’s customer base grew following the re-engagement of some key clients.

He said the grower’s scheme remained on course to deliver the targeted 2,5 million kg of tobacco.

Matsaira said TSL Property group has commenced a $3 million project for the first phase of its warehouse expansion programme amid indications that the project could be completed in October.

He said the second phase was expected to be completed in November.
“We are putting up close to 15 000 square metres of additional warehousing space,” he said.

Matsaira said the group had spent over $1 million on property refurbishments to preserve property value.

Revenue for Bak Logistics was 9% above the previous year while profits were subdued largely due to an ongoing restructuring exercise.

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