ARISTON Holdings Limited posted a profit of $125 000 for the year-ended September 30, 2016 compared to a $5,1 million loss recorded during the same period last year on the back of an increase in fair value adjustments and a reversal in finance costs.
BY VICTORIA MTOMBA
Fair value adjustments were up to $2 million from $802 703. Finance costs reversals were $3,34 million.
In a statement accompanying the group’s financial results, board chairman, Alexander Jongwe said the environment continued to be challenging and was characterised by low consumer spending due to constrained disposable incomes.
“Current year total comprehensive income improved to $100 000 from a comprehensive loss of $5,1 million incurred in the prior year. The group’s gearing ratio improved to 69% from 110% prior year,” he said.
Group revenues went down to $9,2 million from $11,8 million, while total liabilities were reduced to $30,1 million from $33,4 million in prior year.
Macadamia volumes declined to 1 317 tonnes nuts-in-shells from 1 385 tonnes in 2015.
Tea production was affected by the low rainfall in the first half of the year, coupled with power outages, which affected the ability to irrigate.
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Bulk tea sales for the year increased by 5% to 1 205 tonnes from 1 170 tonnes in the prior year.
It said export tea prices across all grades were weak in the period under review affecting tea’s contribution to the group’s financial performance.
In the horticulture division, stone fruit production volumes increased to 776 tonnes from 465 tonnes last year.
Pome fruit volumes decreased by 12% to 1 032 tonnes the fruit count was acceptable but the size was below expectation.
Jongwe said the group’s Southdown Estates production prospects were positive so far and tea production volumes are expected to increase by 60% on the current year volumes.
“So far, limited rainfall and hot temperatures being experienced have resulted in low early season production.
However, the season is predicted to have above normal rains,” Jongwe said.
