8 February 2013

Zimbabwe: Cairns in U.S.$8 Million Loss

Suspended Zimbabwe Stock Exchange-listed food manufacturer Cairns Holdings Limited yesterday reported a US$8,1 million loss for the year ended August 31 2012. In a statement accompanying the group's financial results, company secretary Mr Jeremiah Kwenda said the loss was mainly a result of depressed gross profit as well as high overhead and finance costs.

"Reduced revenue of US$12,4 million down from US$18,9 million was achieved compared to the prior year. Operating loss was at US$4,5 million while finance costs were at US$3,6 million," Mr Kwenda said.

Group turnover was 65 percent of previous year at US$12,3 million and volumes were at 70 percent.

Mr Kwenda said the company was unable to pay a dividend in the year under consideration as a result of the loss.

Cairns Ltd shares are currently suspended from trading and are under Judicial Management of Mr Reggie Saruchera of Grant Thornton Camelsa. The suspension, which was imposed in November last year, came after management voluntarily applied for judicial management.

The group later announced that it required in excess of US$40 million in fresh capital to retire its debt and to replace obsolete equipment.

It is believed that the food and beverages manufacturer owes suppliers about US$3 million, another US$15 million to banks, and considerable amounts to Zimra and its workers.

New Ziana

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