TURNALL Holdings' is now out of the woods after years of perennial losses as it presented a positive sets of results for the FY18 characterised by solvency across all its subsidiaries.
Over the years the groups auditors had declared Turnall bankrupt, as it was saddled by a $29 million debt to its creditors, both in current and non-current liabilities which was affecting viability and nearly drove the company into seeking voluntary de-listing from the ZSE amid uncertainty.
The 2018 results reflected a major turnaround having made a $5,9 million profit from a $0,3 million loss prior year with in excess of $0,6 million having been paid off in debt servicing.
Turnall restructured its short-term debt to medium-term through Zamco and this is expected to reduce the firm's cost of borrowings and remove the bulk of the bank penalty and punitive interest cost which totalled US$500 000 in 2017.
During the period the groups' net current asset position stood at $2,2 million compared to current liabilities of $11,8 million in the comparative period achieved through a combination of a drive for profitability and the debt restructuring process.
Turnall FD Samson Mavende said there is a solid repayment plan of the debt .
"The going concern issue has been has been resolved. We had emphasis of that matter on our accounts where the auditors were saying this business is struggling and may not operating the foreseeable future, why, because we were operating at a loss, with high net current liabilities. We also had debts in default and so on .All that has been resolved. The company is now profitable, the debt has been restructured we are within our payment plans. We now have net current assets and the volumes are improving." he said.
The interest cover increased to 10,5 times from 0,68 times in the previous year while the group's total borrowings declined to US$6,2 million borrowing from US$6,8 million comparable year.
The average borrowing cost for the year was 10% from 16% in 2017 per annum. Earnings per share stood at 0,78 cents from 0,14 cents. The group is looking forward to strengthening its financial performance and its market position in the current year.
Subsequent to the year end the group received approval of a tax amnesty application for an adjusted figure of $1,7 million.