DIVERSIFIED manufacturer Amalgamated Regional Trading (Art) Holdings Limited posted a comprehensive loss of US$3,5 million for the year ended September 30, 2025, following the discontinuation of its loss-making paper and tissue milling business.
The group posted a loss after tax of nearly US$1,4 million from continuing operations as revenue fell 17% to US$28,3 million, reversing a profit of US$1,39 million recorded in the prior year.
Art said performance was weighed down by weak market conditions, pricing pressures, liquidity constraints, internal capacity challenges and rising competition from imports.
Overall sales volumes fell 5%, largely due to price reductions implemented to defend market share ahead of Statutory Instrument 34 of 2025, alongside constrained liquidity.
After a prolonged period of underperformance, the discontinued paper milling unit contributed an additional US$2,2 million loss, pushing the total comprehensive loss to US$3,5 million.
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Gross profit margins declined by 10%, while the group recorded an operating loss of US$0,8 million.
Despite the difficult operating environment, Art reduced operating expenses by 26% through cost-containment measures and limited capital expenditure to essential upgrades.
“Liquidity preservation and operational realignment remained key priorities, with capital expenditure limited to essential upgrades,” chairperson Thomas Utete Wushe said in a statement accompanying the group’s financial year results for the period ended September 30, 2025.
Trade and other receivables increased to US$4,58 million from US$2,99 million in 2024, although the group’s liquidity position improved, with US$1,13 available for every dollar of short-term debt, up from US$0,85 in the previous financial year.
Total assets declined to US$38,82 million from US$40,62 million in the prior year, reflecting the impact of discontinuing the paper milling
business.
Looking ahead, Wushe said Art remains confident that the restructuring undertaken in 2025 has positioned the group for recovery.
“Key priorities for the year ahead include completing non-core asset disposals to unlock liquidity, restoring profitability, maintaining strict cost discipline, and leveraging the group’s strong brands to regain market share,” Wushe said.
“We are confident that government reforms will continue to support a conducive operating environment, including stronger enforcement against illegal imports and counterfeits, encouragement of import substitution and local procurement, and broader macroeconomic stability.”
