Turnall on recovery path

Published: 15 June 2018

SALES volumes at the Zimbabwe Stock Exchange-listed plumbing materials producer Turnall Holdings Limited surged 70 percent during the first months to May, as product availability improved in Zimbabwe, the firm said last week.

Turnall saw its volumes rise to 16 578 tonnes during the period, according to managing director, Rosemary Chisveto, who addressed shareholders during an annual general meeting last week.

Raw materials supplies improved during the first five months and the company, which had been posting losses, was on track back to profitability.

The first half of the year was usually characterised by low business though improved business during the second half of the year was forecasted.

"The group expects the second half to record better performances compared to the first half, which will result in a profit position in the first half and at year end," she noted.

"However, the current period has recorded a better than anticipated trading performance due to constant supply of raw materials that resulted in better product availability," noted Chisveto, adding that Turnall was able to meet market demand during the five month period.

Turnall had gone through a difficult patch in the past few years.

But in April, the firm said it had concluded payment arrangements with key creditors worth about $29 million, as it moved to work out a restructuring programme on the capital structure.

This was after Turnall in 2016 relieved managing director Caleb Musodza and finance director, Kenias Horonga of their duties in what the organisation said was "part of the business' general cost rationalisation efforts".

The Turnall board then appointed Roseline Chisveto as acting managing director.

Musodza and Horonga left the company facing corporate governance issues involving alleged asset stripping and mismanagement of funds.

Turnall had been probing a series of transactions amid suspicions of corruption and fraudulent activities implicating top executives; these could have bled the firm of about $350 000.

"The board wishes to notify shareholders that the managing director Caleb Musodza and finance director Kenias Horonga will leave the organisation with effect from 1 October 2016 and will proceed on leave until 31 December," said Turnall chairperson Rita Likukuma at the time when the company had a negative working capital amounting to $13 million, and was failing to fund its operations.

These are the issues that Chisveto has been grappling with.

She has so far succeeded in calming the nerves of a jittery market through her realignments, which analysts said were helping the company inch towards profitability.

- fingaz

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