Turnall turning around Turnall Holdings pipe moulding machine

TURNAL
Business Reporter—

TURNALL Holdings’ gross profit grew 253 percent to $3 million in the first half of 2015 spurred by overhead recovery and procurement savings measures, the company said. In its unaudited abridged results for the half year ended June 30, 2015, the diversified building material manufacturing firm also announced the resignation of Herbert Nkala as board chairperson after 10 years of service. Rita Likukuma, a former non-executive director and business woman, has been elected to take over as chair of the group.

“The group’s financial performance for the half year ended 30 June 2015 matched expectation. Revenue of $14,01m was nine percent above prior year, in line with volume growth,” said Likukuma. “Revenues were predominantly cash, which greatly assisted in funding operations. Gross profit at $3,09 million was 253 percent above prior year. “Improvement in gross profit came from better overhead and procurement savings initiatives.”

Sales volumes grew eight percent from 27,151 tonnes in 2014 to 29,435 tonnes in 2015. The group has diversified its supplies resulting in savings on key raw materials. In particular, the group changed the supplier of asbestos fibre which resulted in reduction in cost and improved quality o finished product.

It, however, said working capital funding remained a key challenge leading to interruption of production due to raw material outages. Likukuma said the company has managed to build a firm export order book, which should be realised in the second half of 2015. No dividend was declared for the period.

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