APEX Corporation of Zimbabwe (Apex), which suffered a $3,9 billion loss last year, has turned around to profitability, posting a $136,8 billion before tax p
rofit for the half year to April 2006.
The group’s shareholders’ equity increased from $101 billion to $1,26 trillion while turnover grew by 840%, from $83,3 billion to $783,2 billion.
Apex chairman Farai Rwodzi said the group’s recovery plan was in full swing, with the corporate strategy firmly anchored around refocusing the group, expansion and consolidation of core sectors.
“The company is pursuing the acquisition of an engineering concern which will significantly add to the diversification of the group’s revenues through import substitution effects,” said Rwodzi.
Apex is the parent company of Apex Holdings and Phoenix Consolidated Industries.
Apex Holdings, whose other subsidiaries are Zimcast, All Metal Foundries, McMeekan, Marondera Foundry, Precision Grinders and Philpot & Collins, recorded a turnover of $413,5 billion, an increase of 1 085% from the prior year.
Its operating profit increased from a loss of $13,7 billion to a profit of $102,3 billion.
Rwodzi said Apex Holdings will continue to increase external sales in order to pick up increased volumes as well as compensate for reduced demand.
Phoenix’s turnover increased by 750% to $369,7 billion while trading profit increased from $9,4 billion to $98,9 billion.
Phoenix’s subsidiaries are Phoenix Brushware, Premier Products, Scandia Wire, JW Searcy, William Smith & Gourock, Bardwells and Belmont Printers.
Apex once announced its intentions to divest from non-core operations to concentrate on its core business.
The move was part of the company’s refocusing strategy.
Apex is a broadly based group of primarily manufacturing industries in southern Africa.
It is structured into three speci-fic divisions — communications, light manufacturing and foundries.