African Sun returns to profitability in HY17

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African Sun reported revenue growth of 17% to $21.01 million for the half year ended 30 June 2017.  The growth is attributable to an 8% percentage points increase in occupancy, from 37% to 45%. Local rooms sold increased by 21%, international by 33% and regional by 2%. The marginal increase in the regional rooms sold speaks to the weakening regional currencies against the dollar. The growth, coupled with improved cost efficiencies resulted in the group recovering from a loss position of $56K prior year to a profit of $19K. – The Herald, 9 August 2017

An unnamed Indian investor will snap up a 70 percent stake in Zimbabwe’s second largest ferro-chrome producer Zim-Alloys after judicial manager Reggie Saruchera sealed a deal for a $90 million investment. Information is that a team from Grant Thornton is already in the United Kingdom to finalise intricate details of the deal.  Saruchera could not be reached for comment, but sources said an agreement had been reached with the investor and was being finalised. The deal will see the holding of former major shareholder Farai Rwodzi being diluted. Zim-Alloys, which was sold to the Farai Rwodzi-led Benscore Consortium for $10 million in 2005 failed to take off due to poor production performance, attributed to the closure of its four furnaces, as well as poor global metal prices and rising operational costs. The ferrochrome producer, formerly owned by Anglo American Plc, ceased operations in 2008 and was placed under provisional judicial management on July 24, 2014. – The Herald, 9 August 2017

State-owned agro-lender, Agribank and FBC are going into the market to raise $20 million for the 2017/18 agricultural cropping season. This development follows the permission by government last month for the two banks to float agro-bills aimed at raising funds for on-lending to farmers. A cumulative total of $65 million has been raised for agriculture by the two banks as part of an ongoing business partnership since 2010.  In a statement, Agribank said the funding has been deployed to support diverse agricultural activities, such as sugarcane, agro processors, tobacco smallholder farming, macadamia farming, dairy farming, seed maize, maize (Brazil more food programme), wheat, and soya. – NewsDay, 9 August 2017

By |August 9th, 2017|Categories: Headlines|

About the Author:

Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.