HomeBusiness DigestPhoenix results set to surpass inflation

Phoenix results set to surpass inflation

Shakeman Mugari

PHOENIX Consolidated Industries chief executive officer Francis Rodrigues says the company’s results are likely to surpass inflation buoyed by a firm performance in all d


Rodrigues said the results were also likely to be in line with market expectations even though he could not give further details on the upcoming year-end results.

“Our results are likely to be well ahead of inflation. The company has done well in terms of sales and volumes,” said Rodrigues. “Though we cannot say much we are however confident that the results will be satisfactory for the market.”

Phoenix completed its year-end on Friday last week.

On divisional performance, the chief executive said volumes at Scandia Wire had been maintained at last with steady sales in the wire products.

The company is exporting to Botswana, South Africa and Namibia. The new Angolan market is being catered for through Namibia.

Rodrigues said top management would this month visit the Democratic Republic of Congo (DRC) for a market-scanning mission.

“Phoenix will make use of the Zimtrade warehouse which has been set up in DRC and we hope to start selling products once the logistics are done,” the chief executive said.

The pending deal with an agent, which was hinted at in June, is still to be clinched.

Stock cover for the whole group is currently in the region of $2,5 billion, which represents a three-month cover.

Scandia Wire has a strong order which the company expects to cover the next two months while debtors for the group are under control at 45 days.

Rodrigues said William Smith & Gourock, which in the last reporting period had suffered from a lack of major contractual orders, had since recovered.

The division now has a full order book courtesy of major contracts clinched from Cottco and the Grain Marketing Board.

“William Smith & Gourock now has an order book that will last till December. More orders are coming in steadily and that is encouraging. The sales are also good,” Rodrigues said. Volumes in the group are also in line with management expectations. The company said most divisions in the group were operating at between 50% and 75 % capacity except Scandia wire, which is working at full capacity.

Volumes in the Phoenix Brushware have also increased compared to the same period last year.

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