Foreign firms eye Bak

HARARE - Diversified group TSL Limited (TSL) says foreign investors have expressed   interest in its transport and freight subsidiary Bak Logistics Limited (Bak).

TSL plans to engage a technical partner as part of efforts to bolster Bak and unlock shareholder value.
“We have received interests from various international companies and we hope to engage the right partner,” said TSL’s chief executive Washington Matsaira.

He told businessdaily that while the plan was a long term one and the group was “not in hurry”, “we believe this is the right move to make.”

Bak’s revenue went up nine percent in the half year to April 30, 2013, though, profits were subdued owing to a services price restructuring exercise currently underway.

“The second half is expected to record a strong recovery in profitability,” Matsaira said.

During the period under review, TSL’s revenue went up by 31 percent to $20 million from $15 million registered in prior comparable period buoyed by a good tobacco season.

TSL is a major player in Zimbabwe’s tobacco industry.

“A more buoyant tobacco season supported by an expanded customer base for the tobacco related businesses has impacted these results significantly,” said Matsaira.

The group’s profit before tax increased 35 percent to $4,3 million from $3,2 million while profit after tax stood at $3 million compared to $2,3 million. - Kudzai Chawafambira

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