CFI Holdings narrowed its loss to $3,7 million for the half-year ended March 31 from $5,5 million in the comparable period in 2014 after the group halved its operating loss before depreciation, impairment and financing costs.
BUSINESS REPORTER
The operating loss before depreciation, impairment and financing costs was at $1,85 million down from $3,7 million last year.
In addition, the group did not incur retrenchment costs during the period. Last year, retrenchment costs were $995 564.
In a statement accompanying the group’s results, CFI Holdings chairperson Simplicius Chihambakwe said revenue for the group was down 18,1% for the half-year to $34,2 million compared to $41,8 million during the same period last year.
“Revenue declined by 35% and 24% for the poultry and retail division respectively, due to combined effect of a slowdown in overall consumer demand due to the impact of inadequate working capital during the period,” Chihambakwe said.
Finance costs increased to $2,1 million from $1,7 million in 2014. Group borrowings stood at $18,3 million during the half-year period from $2,1 million last year.
The group’s specialised division recorded a 132% growth in revenue due to increased supplier support for Victoria Foods. Chihambakwe said the specialised division contributed 17% to total revenue, while poultry and retail division contributed 25% and 58% respectively during the period under review.
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Chihambakwe said the group had engaged experienced real estate development consultants to help the company regularise and oversee the implementation of various development facets at Saturday Retreat.
The group now has 9 000 stands at the estate and was receiving monthly payments from people who occupied the farm when the government compulsorily acquired it.
“Recoveries from the estate will empower the group to resolve some legacy debt issue and in part dealing with the group recapitalisation,” he said.
Meanwhile, the group said Reston Developers was servicing 635 stands opposite Glenview.
The servicing began in March and the first phase was expected to be completed by year-end. The first phase has 210 residential stands.
