CELSYS Limited has narrowed its loss for the full year to August to $587 802 from $1,4 million due to a cut in selling and administrative costs.
By Victoria Mtomba
While revenue remained flat at $1,8 million, administrative costs during the period under review declined to $1,2 million from
$1,4 million reported in the comparative prior period.
Celsys recorded a 4% increase in revenue to $1,89 million while increased efficiencies in production and turnaround resulted in gross profit increasing to
Celsys Print accounted for 84% of the revenue while Celsys Technical Services accounted for the balance.
“Administrative expenses decreases by 15% for the year under review. Labour costs continued to be the biggest component of administrative expenses, increasing from 54% in 2012 to 63% in 2013,” company chairman Lovemore Chihota said.
Margins improved to 36% this year compared to 31% in 2012.
Chihota said during the period under review macro-economic challenges persisted and were further aggravated by the focus on elections resulting in the period under review being characterised by a significant slowdown in business across the country.
“The lack of liquidity and general economic slowdown continues to depress revenues in the business.
“Celsys requires a significant capital injection in order to upgrade equipment and ensure that the business is equipped to face increasing competition from both local and international print houses,” Chihota said.
He said the operating environment would continue to be difficult over the next year.
“The future survival of the company will in the short run depend on an aggressive push in increasing sales as well as continued cost containment and in long run upon the upgrading of the plant and equipment to better meet the needs of a diverse and evolving market place,” Chihota said.
The company’s shares have been suspended from trading at the Zimbabwe Stock Exchange.