PG release a weak set of results

PG release a weak set of results
Published: 30 September 2013
PG Industries released a weak set of results showing an attributable loss of $2.2m.

Although the loss before tax reduced to $2.2m, the overall group gross margin declined from 31% to 27% this was mainly due to competitive pressure, particularly at the merchandising division. A high level of borrowings resulted in the group incurring finance charges of $1.3m.

The commissioning of a new tile making plant at Zimtile beginning of 2012 resulted in improved production capacity and efficiencies, consequently sales grew by 29% to $4.5m. On the Balance sheet, total assets declined by 11% mainly due to the disposal of assets.

The company continues to struggle as its current liabilities exceed current assets and the group continues to face working capital constrains. Overall the performance of the group is not convincing as the group is unlikely to return to profitability given the stiff competition and very weak balance sheet. 
- businessdaily
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