CAPS Holdings Ltd (Caps) says its Botswana subsidiary has turned around and made a modest P390 000 profit for the year ended December 31. This compared to a loss of P829 000 chalked up during th
e same time previously.
Caps have business interests in Botswana and South Africa.
Caps South Africa managed to increase its profitability in rands by 349%. The company said this was largely due to more efficient cost structures.
Caps achieved consolidated attributable earnings of $10,8 billion, which compared to a loss in the prior year of $115 million.
It realised significant exchange gains of $5 billion, which were as a result of the significant net foreign currency denominated receivables and cash balances during the year.
Caps this week said it held significant levels of stock with the balance at year-end being $15,8 billion and the prepayments for stock included in debtors was $4 billion.
The company said 2004 was unpredictable with respect to the macro-economic environment of the country.
“The profitability of our exports has been negatively impacted by the current exchange rates,” Caps said. “The group has nonetheless decided to continue exporting in order to maintain market presence.”