Published by the government of Zimbabwe
29 August 2008
Harare — Diversified industrial conglomerate TA Holdings completed the first six months of the year on a solid financial position after posting a $732 quadrillion profit after tax, up from $56 trillion registered in the same period last year.
Improvements in performance of the group's hotel investments in both local and foreign -- and its insurance investments buoyed the increase in profit.
In its financial statement for the half year ended June 30,2008, the group said that foreign investments contributed immensely to pull the conglomerate out of the woods.
On performance, basic earnings per share for the group grew from $4,2 billion per share from $4,288 million in the corresponding period.
The group said: "The growth in earnings was a result of improved underwriting performance at Botswana Insurance Company, increased profitability at Cresta Marakanelo and sustainable income growth on portfolio investments in Zimbabwe". On sectoral, performance, Zimnat Lion Insurance's net revenue increased to $871 trillion from the corresponding period of $193 billion during the half year period under review.
The balance sheet size grew from $22 trillion as at December 31, 2007 to $451 quadrillion at June 30,2008 mainly due to profits achieved during the half-year period of $290 quadrillion and revaluation of property, plant and equipment of $51 quadrillion. Zimnat life, the life fund increased from $63 trillion at the year-end to $2 quintillion as at June 30,2008 on the back of increased gains from fair valuation of equity investments and properties.
However, Cresta Zimbabwe occupancies fell from 53 percent as of last year to 49 percent during the period under review.
Profit was negatively affected by revenue restrictions resulting from price controls.
Zimbabwe Fertilizer Company's capacity utilisation was at 12 percent, an improved performance, especially in non-controlled chemical products. On Botswana Insurance company, revenue grew by 8 percent during the period under review compared to the corresponding period last year and expenses decreased by 11 percent resulting in an underwriting profit of 8 million pula.
Cresta Marakanelo recorded a profit of 6 million Pula up by 190 percent from the same period last year. Cash balances for investment and further refurbishment grew to 6 million Pula.
Uganda Lion Assurance company recorded a revenue of 3 billion Ugandan Shillings an increase of 105 percent from the previous figure of $2 billion Ugsh. Investment income grew by 429 percent on the back of good performance of the Ugandan, Tanzanian, and Kenyan securities.
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