$1m retrenchment worsens CFI losses

HARARE - Listed agro group CFI Holdings Limited (CFI) says its losses widened in the year to September 2014 due to a $1 million retrenchment exercise at its depressed poultry unit.

The group’s operating loss from operations before depreciation and financial costs widened to $5,2 million during the period under review from $2,2 million incurred prior year.

CFI’s poultry division is made up of Agrifoods, Agrimix, Hubbard Zimbabwe, Glenara Estates, Crest Breeders International and Suncrest Chickens.

The poultry operations’ volumes declined to 40 000 tonnes from 55 000 tonnes sold in previous comparative year.

Simplisius Chihambakwe, the group’s chairman, said in the group’s financials that the retrenchment costs had negatively impacted on the group’s performance.

The group’s loss for the year stood at $8,8 million compared to $6,6 million recorded prior year while finance costs remained flat at $3,9 million.

CFI disposed of its 14 percent investment stake in fertiliser-maker, Windmill, closing the year with $18,2 million total borrowings.

The group also terminated an equity transaction involving Victoria Foods (Victoria) during the period under review.

“Inadequate capital coupled with delays in finalisation of the Victoria capitalisation deal and the subsequent cancellation of the same by our targeted investment partners, negatively impacted the business’ production planning process, resulting in a constrained performance during the period,” he said.

The group also reached an agreement with government regarding Saturday Retreat, a property measuring 1 057 hectares, which had been invaded by a number of housing co-operatives.

“The settlement finalised between government and CFI and the co-operatives will see Crest Breeders retain the unoccupied 401 hectares for residential development and recover compensation on the 656 hectares that was already occupied prior to confirmation of gazetting of the estate,” Chihambakwe said.

CFI signed a Memorandum of Understanding (MoU) defining a land for debt swap framework with its financiers last year in April, premised on Langford Estates, a property owned by Crest Breeders.

“The group hopes to conclude the swap arrangements before the second quarter ending March 31, 2015...,”

“The group now has an approved sub-division permit for the development of 12 401 high density stands measuring 240 square metres each,” the chairman said.

CFI also concluded a joint venture with Craftcall Investments (Private) Limited to develop 635 stands at Crest Township, a property located opposite Glen View 7, in a development called “Suncrest Park.”

The project is expected to commence in the second quarter of the 2015 financial year.

The group did not declare a dividend for the year.

Comments (6)

CFI has been a problem Company for a long time, my sincere hope is that the retrenchments saw the CEO Steve also being one of the retrenched

Chihota - 2 February 2015

This company is now in real estate development. There is no core business in Zimbabwe. Just survival strategies!

Muongorori - 2 February 2015

the problem with these marmoth conglomerates is that the so called top brass is filled to the neck with dead wood .they should wake up and start living in the real world were competition and innovation take centre stage

fire links - 3 February 2015

Clearly the business need renewal strategies as it does not stand a chance with antiquated equipment. There is also need for change of guard to breathe in new life alongside new capital

Shie - 9 February 2015

The top brass of CFI is filled with thieves the whole executive have put the group to its knees Van hoog is right to weed off such elements

woodpecker - 8 December 2017

The top brass of CFI is filled with thieves the whole executive have put the group to its knees Van hoog is right to weed off such elements

woodpecker - 8 December 2017

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