TURNALL Holdings Limited will pay its parent company a fixed profit share of 10% on a US$3,75 million shareholder loan used to finance its new fibre-cement sheeting plant in Harare.
According to the group’s annual report for the year-ended December 31, 2025, the funding was provided by majority shareholder Zimbabwean Brands (Private) Limited, which holds a 97,37% stake in the construction materials manufacturer.
The loan helped fund the commissioning of the new Harare plant in March, a project that forms part of Turnall’s strategy to expand production capacity, improve efficiency and broaden its product range.
However, because commercial operations only began towards the end of the first quarter, management said the full benefits of the investment are expected to be realised in subsequent periods as production stabilises.
Turnall disclosed that current liabilities include US$1,11 million relating to the current portion of the shareholder loan, while the long-term portion of US$3,75 million is classified under non-current liabilities.
“In terms of the loan agreement, Zimbabwean Brands shall continue to provide funding to the group for the new plant in accordance with further agreements entered into between the parties,” the company said.
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“The group shall pay Zimbabwean Brands (Private) Limited a fixed profit share on the outstanding loan balance at the agreed rate.
“The group shall repay to the shareholder the principal amount advanced together with a profit share calculated at 14% per annum. Subsequent to year-end, the profit share rate was revised to 10% per annum by mutual agreement of the parties.”
The company continued its recovery in 2025, narrowing its comprehensive loss by 87% to US$412 560 from US$3,05 million in the prior year. Revenue increased 5% to US$12,64 million, while gross margins improved to 26% from 19%, reflecting tighter cost controls and operational efficiencies.
Managing director Ian Bagshaw said management’s priority in 2026 would be maximising returns from the new investment.
“During the 2026 financial year, management’s focus will be on maximising the benefits of the new investment through improved operational performance, disciplined working capital management, expansion into export markets and continued enhancement of shareholder value,” he said.
Turnall also plans to upgrade its Bulawayo sheeting plant to support product diversification and regional export growth.
The company said shareholder support remained strong throughout the year, helping fund strategic capital projects, including the Harare facility, as part of its broader turnaround strategy.
Directors said they remained satisfied that the group would continue operating as a going concern, citing expected profitability in 2026, positive net operating cash flows of US$2,2 million, ongoing cost-containment measures and adequate raw material supplies.