Turnall partners NBS

HARARE - Turnall Holdings Limited says it is expecting the strategic partnership it entered into with the National Building Society (NBS) for construction of houses around the country to improve its revenue for the year to December 2017.

Turnall Holdings’ acting managing director Roseline Chisveto said the company last year partnered NBS in providing housing materials to support its nationwide housing scheme for low-to-middle income earners and individuals in the informal sector.

NBS provides affordable low-cost housing through the provision of mortgage finance to first time home owners primarily for high and medium density developments.

“In line with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset)’s objective to provide housing for all Zimbabweans, we partnered the NBS to provide selected building materials that are needed for this project.

“We are doing it at a large scale and believe it will add to our bottom line. We are also working with civil servants on their housing project,” Chisveto told the businessdaily after the company’s annual general meeting.

Government’s economic blueprint, ZimAsset, says the National Social Security Authority (Nssa) has the mandate to deliver affordable housing for over 1,2 million people on the waiting list.

NBS wants to develop 100 000 units worth $1,5 billion over the next five years.

The money is being raised through deposit mobilisation, bond issuance and capital call.

NBS, which is owned by Nssa, was licensed in April 2016 and opened its first branch in May the same year.

NBS is currently working on projects in areas such as Bindura, Ruwa, Chinhoyi, Shurugwi, Gweru and Masvingo.

Official figures as at December 31, 2016 say the country’s housing waiting list is at 1,25 million.

In January this year government announced an ambitious programme to build 500 000 housing units for civil servants in the next 18 months, as part of efforts to reduce the housing backlog and incentivise its workers.

Other strategies Turnall was pursuing include reducing costs and expanding its markets, according to Chisveto, who said the company’s performance for June and July had been encouraging.

“We have been on a turnaround journey and believe we have set a good basis for sustainable profitability, the last two months have been very encouraging and if we can maintain or surpass these levels we will be on sound footing. I cannot give you figures since we are on a closed period,” she said.

Turnall has been going through a transformation programme since the departure of former managing directors, John Jere, last year and Caleb Musodza this year.

Chisveto believes the company’s turnaround strategy would ensure its continued survival.

Turnall said it was working on its going concern status after its auditors Deloitte and Touche, who were reelected at the AGM, indicated that its current liabilities exceeded its assets by $11 million in the year to December 31, 2016.

Turnall, which re-stated its financial results for 2016 after a re-negotiation of some liabilities reported a pre-tax loss of $1,7 million, adjusted from the $6,3 million loss initially reported in May.

The company said although it was struggling to pay its creditors, it had agreed payment plans to clear its debt.

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