Cafca revenue up 25pc

HARARE - Zimbabwe Stock Exchange-listed cable manufacturer Cafca’s revenue went up 25 percent to $23,1 million in the year to September 30, 2012 from $18,5 million registered in the nine months to September last year.

Operating profit increased by 19 percent to $2,4 million.

The group changed its financial year get it in line with that of the majority shareholder for the purpose of consolidation.

CBI-Electric African Cables Limited — a division of ATC (PTY) Limited — holds 71 percent of Cafca, while the remaining 29 percent is widely held.

Finance charges for the twelve months period were $89,780 against a nine-month period comparative of $170,776 due to the reduced borrowings and cheaper interest rates.

Profit after tax stood at $1,6 million against $1,2 million. Basic earnings per share jumped to 5,13 cents from 3,97 cents.

Despite registering a modest profit, the company did not declare a dividend due to plans to eliminate all borrowings and invest in plant upgrade.

Cafca manufactures and supplies over 900 cabling products for transmission, and distribution of electronical energy and information in southern, and central Africa.

In the outlook period, the group said it aims to maintain borrowings below the current usage until such time as the current uncertainity in the economy improves.

“Due to uncertainty in the environment, we are forecasting to at least maintain current throughput for the next twelve months with any downturn in demand being replaced with recycling copper barter deals,” said the company.

Cafca exports 10 percent of sales to Malawi, Zambia, Mozambique and a limited amount to South Africa. - Business Writer

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.