PADENGA Holdings Limited’s profit after tax has more than doubled to $4,04 million for the period ending June 30, 2017 due to positive cash coming from the group’s operating activities.
BY TATIRA ZWINOIRA
The jump in profit was from a previous half year of about $2 million in the 2016 comparative.
“We sold 5 283 skins compared to 20 978 skins in the comparable period in 2016. For the current year, there are no allegator skin stocks brought forward from the prior period and culling for the foreign operation will only commence in the second half of the year,” Padenga Holdings chairman, Alexander Calder said in a statement accompanying the financial results.
“There was positive cash generated by the group from operating activities amounting to $1 222 615 for the six months ended June 30, 2017. This compares with the negative net cash utilisation of $1 518 697 for the comparable period in the prior year. This increase in cash generation was mainly attributed to a decrease in debtors and increase in creditors.”
He said the company had maintained good relationships with foreign suppliers for critical inputs amid foreign payments delays.
“Shareholders are reminded that the first half of the year is essentially a cost accumulation period with revenue largely coming in the second half,” Calder said.
Demand for skins and other products is expected to be high in the second half, as demand is usually higher during this period with the added effect of an increase in tourist arrivals.
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The revenue for the period under review was lower than the profit after tax at $2,96 million, which was 51,47% from 2016’s comparative of $6,1 million.
Padenga Holdings reported having net operating costs of $7,22 million showing the company needed to bring the cost down, however, this was lower than the previous year’s $9,13 million by 20,83%, showing the company is bringing the costs down.
The net profit margin for the group 136,55% showing the company is profitable. The net cash generated/or utilised was a positive $49 361, which was overturned by 2016’s negative comparative net cash generated/or utilised of $2,9 million.
Assets grew to $22,06 million for the period under review from 2016’s $19,21 million largely owing to an increase in property, plant and equipment.
The positive cash generated from operating activities, together with the net cash, showed the company was carefully managing cash inflows against expenditure improving the group’s reserves.
