ASTRA Industries Ltd and Tractive Power Holdings will hold Annual General Meetings (AGMs) next week which both companies said were “normal” and “complying” with the law as listed companies.
Astra Industries Managing Director McKenzie Mazimbe told businessdigest on Wednesday that the company’s AGM which will be held next week on Wednesday was “a mere formality” adding that he will update shareholders of the company’s trading and targets for the financial year.
“We are looking forward to it (AGM). There is nothing sinister but complying with regulations,” Mazimbe said.
Astra’s Finance Director Heritage Nhende told businessdigest that the company’s AGM was “ordinary” with issues such as approving the company’s financial accounts, appointments of directors and auditors and endorsing directors’ fees expected to dominate the AGM.
Astra Industries Ltd is engaged in the manufacture and distribution of surface coatings, chemicals trading and steel trading. The company is organised into three operating divisions –– paints, chemicals and steel. The company operates through several subsidiaries. Astra achieved an operating profit of US$997 527 during the financial year ending August 31 2010. Profit attributable to equity holders of parent company was US$863 535 while operating profit was US$20,2 million.
Commenting on the company’s outlook, Astra said: “While the business environment has been stable since the dollarisation of the economy, business activity has remained depressed and is likely to continue for at least the next 12 months. Given this background, the group forecasts a moderate growth in the 2010/11 financial year.”
Astra’s Industries and Tractive Power Holdings operations have over the past two years been negatively affected by unreliable electricity supplies, low capacity utilisation and liquidity constraints.
Astra’s share price has been hovering around 3,50c cents while Tractive Power Holdings has floated at 5 cents over the past week.
Tractive achieved revenue amounting to US$25, 9 million during the same period, an increase of 127% on prior year comparative.
Operating profit increased by 12% to US$619 000. The group had to rationalise its staffing complement in order to re-align operating costs to current revenue streams.
“Redundancy costs of US$120 000 were paid during the period under review, coupled with a voluntary early retirement exercise,” the company said in a statement accompanying the financial results.
Tractive’s nature of business includes marketing and supporting a broad range of machinery and vehicles units. Its division Barzem has a dealer representative agreement for Caterpiller and Hyster equipment, Farmec holds franchises for Massey Fergson, Perkins and implements brands for Monosem, Kongskilde Vicon, Howard and Drotsky while Puzey and Payne handles Peugeot, Mazda, Mitsubishi, VW and Audi vehicles. The Zimbabwe Agriculture Society (ZAS) will also hold its AGM next Thursday.
One of ZAS’s objective at the AGM is coming up with and consolidating measures that are conducive in promoting both commercial and small-scale farmers through the exhibition following the improved economic environment which has resulted in increased activity in the local economy.
Zimbabwe’s agriculture sector is emerging from the intensive care unit after a decade characterised by political unrest, drought, shortage of inputs and fuel coupled with unreliable electricity for winter farming and absence of collateral to access loans.