DIVERSIFIED manufacturer Amalgamated Regional Trading Holdings Limited (ART) expects improved cash flows in its second quarter ending March 31, 2026, following anticipated proceeds from property disposals.
This comes after the group reported a comprehensive loss of US$3,5 million for the full year ended September 30, 2025, following the discontinuation of its paper and tissue milling operations.
During its full year, the group posted a loss of nearly US$1,4 million as revenue declined by 17%. This was from a profit after tax over the comparative 2024 period of US$1,39 million.
The weaker performance reflected challenging market conditions, structural changes across ART’s operations, capacity limitations, pricing pressures, tight liquidity, and growing competition from imports.
In a trading update for the first quarter ended December 31, 2025, ART said it had begun executing a recovery strategy aimed at returning the company to profitability.
Measures include active creditor engagement, settlement of restructuring obligations, strict cost control, and tight working capital management.
“The group has made some progress on property disposals with proceeds expected in the second quarter at market-reflective prices. The group’s recovery strategy will continue to prioritise margins, liquidity, and operational resilience,” the company said.
Despite stakeholder concerns over the pace of recovery, the company expressed confidence that its ongoing initiatives would deliver consistent financial improvement.
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ART said it is focusing on internal funding through improved cash generation, working capital discipline, and asset disposals, with future capital decisions guided by shareholder value and prevailing economic conditions.
During the quarter under review, turnover reached US$7 million, 4% below the prior year, as the group focused on margin improvement and cash generation following the scale-down of the paper business.
Overall sales volumes were 1% lower, with firmer demand for Exide batteries and Eversharp pens tempered by production disruptions and logistical delays.
Export volumes declined 2% due to tighter regional credit terms.
Within the stationery and paper segment, pen volumes fell 14% year-on-year, with turnover down 12%, reflecting better pricing and stocking by traditional channel partners.
Tissue converting was deferred to the second half of the year to allow for proper raw material planning.
“Significant back-to-school orders were supplied in January 2026,” ART said.
In the energy segment, battery volumes were slightly higher locally, supported by changes in sales channels and marketing efforts.
Gross margin improvements were driven by favourable product mix and cost containment, with Exide brand equity remaining strong.
Timber volumes under the Mutare Estates portfolio rose 40% compared to the previous year, reflecting an expanded customer base.
