Liquidity pressures have prompted Ariston Holdings to restructure short-term debt and seek shareholder support, as the group moves to stabilise its finances.
Ariston recorded short-term borrowings of US$2,79 million and long-term debt of US$8,24 million for the financial year ended September 30, 2025.
Bank loans of US$4,49 million, carrying 16% interest, are secured through export receivables, while related-party loans are backed by a US$2 million mortgage bond over Clearwater Estate and attract interest of 6%.
Current liabilities stood at US$10,02 million against current assets of US$7,96 million, highlighting the strain on liquidity.
“The group continues to engage its lending institutions with a view to restructuring short-term borrowings into longer dated facilities, thereby reducing near-term liquidity pressure and aligning debt servicing obligations with projected cash generation,” Ariston said in its financial results.
Keep Reading
- High costs hold back Ariston
- High costs hold back Ariston
- Two banks on RBZ watch list
- ‘Zim has capacity to produce 12 tonnes macadamia nuts per hectare’
The group posted a US$3,13 million loss, improving from a US$4,28 million loss in the prior year, but said pressure on cash flows remained acute.
In a further bid to steady operations, Ariston said its major shareholder and business partner, Origin Global Holdings Limited, was preparing support.
“During December 2024, the group secured US$3 million in longer term funding comprising capital expenditure and working capital facilities, with final maturities extending to December 2027,” Ariston said.
“In addition, the group’s major shareholder, Origin Global Holdings Limited, has indicated its intention to provide ongoing shareholder support. Engagements are currently underway to formalise the nature, quantum and timing of this support.”
Management said it had intensified measures to improve productivity and contain costs, including mechanised tea plucking, expanded use of solar power, staff rationalisation, automation, and off-take agreements with major macadamia buyers to improve revenue visibility.
Directors said cash flow forecasts covering at least 12 months supported the use of the going concern basis, despite downside risks, including weaker commodity prices, further climatic disruptions, funding delays, and litigation.
“While these matters remain areas of uncertainty, the directors believe that the mitigating actions outlined above are capable of being implemented successfully and will enable the group to meet its obligations as they fall due over the forecast period,” Ariston said.