TA Holdings in $5,1m loss

31 March 2011

 

TA Holdings group have reported a loss after tax of $5,1 million weighed down by performances of companies in which the conglomerate has investment interest.

Poor performances by Zimnat Lion Insurance Company, PG Industries, Sable Chemical Industry and Zimbabwe Fertiliser Company had a negative impact on the performance of the group in 2010.

PG Industries recorded an after-tax loss of $7,5 million as a result of closure of several units and working capital constraints.

In a statement accompanying the group’s financial results for the year ended December 31 2010, TA Holdings said Sable Chemicals in which the group has a 51% interest incurred an after-tax loss of $8,3 million during 2010 despite production levels increasing 113%.

However, production levels were still below budget due to plant breakdowns in the early part of 2010 and lower than planned for ammonia imports as a result of logistical problems for imports coming through South Africa.

“Whilst the results from Sable Chemicals are disappointing, the future prospects for this company are positive in the medium term, once the transformation to coal gasification technology takes place,” TA Holdings said.

“The feasibility study to investigate the viability of this is currently underway and results are expected by the end of the first half of the year which will give clarity to the potential of this investment.”

Shareholder equity decreased from $63 million to $48 million mainly due to losses incurred during the year and impairment of the Sable Chemicals plant.

In an effort to increase its revenue generation in Zimbabwe Insurance investments, TA plans to inject $3,5 million following the approval of financing structures in October last year.

Occupancies at Cresta Zimbabwe increased buoyed by business from non-governmental organisations.