Turnall reports loss for FY16, revenue down 41%

Home/Headlines/Turnall reports loss for FY16, revenue down 41%

Turnall reported its result for the year ended 31 December 2017 showing 41% drop in revenue to $16.9 million down from $29 million prior year comparative. Gross profit amounted to $1.8 million down from $6.6 million. Turnall however reported a loss of $1.2 million against a profit of $106,938 prior year comparative. This is after the Group incurred impairment losses of $2.9 million arising from plant on care and maintenance held to maturity investment and intangible asset. The group also incurred retrenchment costs of $600,000 during the year. The Group however also gained $7.2 million from debt rescheduling and write offs.  The impairment and losses in the current year significantly reduced the Group’s equity capital. The board has therefore instituted a balance sheet restructuring scheme to ensure that the business is capacitated to trade profitably. The details of the scheme will be communicated to shareholders in due course.  The group has total loans and borrowings of $6.9 million at an average cost of 14% and equity of only $3.6 million. The Group’s current liabilities exceeded current assets by $10.9 million against $14.8 million. The Company has not been able to meet its obligations with banks and creditors as they become due and has made payment plans agreed with creditors. Non-current trade and payables amount to $4.3 million with management saying this relate to suppliers who have allowed the business payment terms that exceed one year from December 2016. The Company also has a weak current liquidity ratio at 0.31 hence the need to make payment plans for trade and other payables and probably refinance current loans and borrowings of $3.9 million.  At a debt ratio of 0.20 times the company however has plenty of assets that can be sold off to meet its obligations. – The Herald, 7 August 2017

Non-life insurance companies’ profit after tax surged to $3.83 mln during the first quarter of 2017 due to a rise in net premium written and reductions in operational expenses. The surge was from a previous of $2.39 mln during the same period under review in 2016. According to the 2017 Insurance and Pensions Commission (Ipec) first quarter report non-life insurers reported an increase in total gross premium written (GPW) amounting to $68.22 mln for the quarter ended March 31 2017. This compared to $66.59 mln reported during the same period in 2016. The asset base for the insurance industry also increased to $409.62 mln as at March 31, 2017 from $390.30 mln over the same period in 2016. – Newsday, 7 August 2017 

The Insurance and Pension Commission has ordered all insurers, brokers and intermediaries to immediately stop using ‘unregistered’ touts for marketing and selling insurance policies, especially motor insurance. The directive will hit insurers who have been reaping huge the practice of using unregistered agents. IPEC Commissioner Tendai Karonga said the order was meant to protect the industry. – The Herald, 7 August 2017

Masawara, a Zimbabwean focused investment outfit, is banking on timeous disposal of its holding in Ugandan insurance firm, Lion Insurance Company, to defray its us$11 million long term debt, part of which is due on August 18. The acquisitive group, which has a sprawling empire that cover hospitality, property, agro-chemicals and information communication technology, plans to use part of the $5.7 million from LAC to repay $1.1 million in the next 12 days and early settle a significant portion of the same loan which matures in February 2018. – The Herald, 6 August 2017

The Postal and Telecommunications Regulatory Authority of Zimbabwe has rejected demands from the public to allow for more new players in the country’s heavily-regulated and government dominated telecommunications industry. Potraz director general Gift Machengete told delegates attending the Mobile Money Digital Payments conference in Harare last week that the country “had no capacity to regulate more than 3 mobile network operators” – Daily News, 7 August 2017

By |August 7th, 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.