BY CHIEDZA KOWO
AGRO firm, CFI Holdings Limited (CHL) is stepping up talks with the Zimbabwe Stock Exchange (ZSE) to resolve outstanding issues over the suspension of its shares.
In August 2018, the ZSE suspended CHL over non-compliance with listing requirements around free float threshold, appointment of a substantive board chair, chief executive and financial director and independent nonexecutive directors.
As a result, the company has not been able to access capital from the main bourse now worth $745,17 billion.
“The company continues to make efforts to engage the Zimbabwe Stock Exchange (ZSE) to resolve the outstanding issues pertaining to the suspension of trading of its shares on the stock exchange,” CHL chairperson Itai Pasi said in a statement attached to its financial results for the half year ended March 31, 2021.
“Your board is hopeful that the same may be resolved in due course.”
ZSE’s suspension of CHL requires that the firm complies with other listing requirements while addressing areas of non-compliance.
As at the end of the financial period under review, the ZSE was yet to lift CHL’s suspension.
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The suspension of CHL comes at a time when the company is focused on consolidating the group’s resurgence in order to nurture its businesses to contribute fully to Zimbabwe’s food sustainability.
Further, Pasi said CHL was seeking to deliver shareholder profitability.
During the period under review, group inflation-adjusted revenue increased by 79.8%, to $3,56 billion, from a comparative $1,98 billion last year, owing to increased demand for farming products resulting from better rain.
This led to a profit after tax increase of $73,642 million, an increase of 20% from last year’s $61 346 717.
“The improvement is attributable to increased procurement efficiencies and strengthened cost containment efforts sustained during the period,” Pasi said.
Under CHL’s Farm and City business, the firm’s farming inputs retail company, key sales volumes improved by 82% compared to the prior period. The increase was attributable to a resurgence in construction activities and the relatively good 2021/2020 rainy season.
“The introduction of the foreign currency auction system and the use of USD as a mode of payment reinforced stability and assisted the business in sourcing various merchandise efficiently,” Pasi said.
She added that its Glenara Estates subsidiary established 570 hectares of commercial maize, 173 hectares of soya beans, and 14 hectares of sugar beans for its summer crops during the 2020/2021 farming season to benefit from the increased rains. The estate is a crop production farm of CHL’s.
Concerning CHL’s milling operations, stockfeed sales volumes increased at CHL subsidiary Agrifoods Private Limited owing to a recovery of lost market share and success among medium to large scale farmers.
Pasi said Victoria Foods resumed mealie-meal and flour production during the period.
“However, the company continued to operate under care and maintenance during the period … The group continues to pursue the exit of Victoria Foods from judicial management, with plans to thereafter further recapitalise all the business units during and beyond the second half of the year,” she said.
“Right aligning overhead cost structures and adapting the business to the changing business environment remains key to ensuring sustainability of the group’s operations.”
She said the management of a consistent raw material supply line for Agrifoods and Victoria Foods would remain an on-going priority given the prevailing liquidity situation in the economy and the long delivery lead times for imports.
The group’s property development portfolio saw regularised payments for stands for CHL’s Saturday Retreat and Suncrest Park. However, legal proceedings remain pending for its Langford Estates over its sale to Fidelity Life back in 2015 in exchange for a debt worth US$18 million belonging to CHL.
Total assets grew marginally to $4,61 billion during the period under review, from a 2020 comparative of $4,24 billion.
In terms of liquidity, CHL was very liquid recording $2,61 to every $1 of current debt.
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