LISTED building materials producer Turnall Holdings has reduced its board size as part of cost-reduction measures and recovery programme.
BY MTHANDAZO NYONI
In a trading update to shareholders and other stakeholders yesterday, Turnall secretary Kenias Horonga said a continued cost-reduction programme was essential to ensure competitiveness and prosperity of the business in the current depressed marketplace, particularly while traditional export markets had become challenging as a result of weaker regional currencies.
“As part of that ongoing cost reduction and recovery programme, it has been decided to reduce the size of the board. With effect from January 8, 2016, Messrs P F Chingoka, Chirandu E Dhlembeu, Celestine M Gadzikwa, Peter C C Moyo, John Mushayavahnu, James P Mutizwa, Kiritkumar Naik and L Sasikwa resigned from the board,” Horonga said.
Rita Likukuma remains chairperson of the board whilst Portia Marufu remains a board member. Joining them are new appointees Innocent Chinyama, Munyaradzi Gwanzura, Noel Hayes and Manfred Mahari.
“They bring a wealth of experience and new perspectives into business,” Horonga said.
He said the result of these and other changes would see a further significant reduction in the fixed overhead costs of the business.
“This will enhance profitability and release cash to pay borrowings and invest in the business,” he said.
He said despite the bleak economic outlook, Turnall was confident of making further progress in 2016 and the new board would be examining every opportunity to firmly establish the company as the region’s preferred supplier of building and construction products, standing ready to play its part in the long overdue rehabilitation of the nation’s infrastructure and meeting the need for quality, low-cost housing
Horonga said the rightsizing of the business had been at a considerable financial and social cost.
He said following significant turnaround work commenced in September 2014, Turnall returned to profitability and recorded a profit before tax of $489,738 for the first half of 2015.
“Despite challenging market conditions, the company has maintained its market share and improved its profitability into the second half of 2015,” Horonga said.