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Business Reporter
LISTED building materials manufacturer, Turnall Holdings’ board chairperson, Mrs Rita Likukuma, has retired from the company.

In a public notice, the company announced that Mrs Likukuma retired by rotation at the Annual General Meeting held on June 30.

“The Turnall Holdings board would like to advise board members that Mrs Rita Likukuma retired by rotation at the Annual General Meeting on the 30th of June 2020 and did not offer herself for re-election.

The board, management and staff would like to thank Rita for her many years of dedicated service and commitment to Turnall,” said the company.

Mrs Likukuma took over as chairperson when the business was making losses and had a weak balance sheet and managed to steer the entity to profitability and solvency.

In the full year ended December 31, 2019, Turnall export turnover improved to $10,5 million contributing five percent to the group’s total turnover of $231,6 million.

The group’s export turnover contributed five percent of turnover from 0,3 percent in the previous year.

This was attributed to the group’s strategy that resulted in enhanced presence in the regional markets.

In the financial year ended December 2018, Turnall was exporting to Zambia only but increased its market coverage last year to include Mozambique and South Africa.

The group’s total turnover, which amounted to $231,6 million during the period under review was 11 percent below the previous year.

The group experienced depressed product demand during the year due to low disposable incomes as inflation increased.

And despite slightly improved demand in the second half, the group was constrained by unavailability of forex for the importation of raw materials, high power outages and shortages.

During the period under review, Turnall said the gross profit margin was 33 percent while in 2018, it stood at 35 percent.

The company was unable to pass on the full cost of production to the customer due to price resistance.

Operating costs of $62,5 million were 12 percent above the previous year compared to revenue decline of 11 percent.

Fuel and electricity tariff increases were the major drivers of operating costs during the year under review.

Finance costs of $1,88 million were however 65 percent below the previous year.

The company’s profit before tax was $99,4 million compared to $76,5 million the previous year.