Financial costs constrain Celsys

CELSYS says its earnings before interest, taxes depreciation and armotisation (EBITDA) turned positive last month.

However, earnings are still limited by the huge finance costs, acting chairman Paul Turner told shareholders at the annual general meeting on Wednesday. He said that borrowings from LonZim (now Cambria Africa) were at US$4,1 million, with the average cost of 19% made up of 1% libor plus 18%.

Chief financial officer Chido Maunze said that revenue was averaging US$117 000 per month, with gross margins in the first quarter improving to between 28% and 30% from 20% last year.

Turner said the group is now focusing on growing its commercial printing business while Celsys Technical Services will be phased out.

Turner said that the change of name to Cambria Africa plc was a move for the parent company to operate independently from Lonrho Plc. The name is inspired by the Cambrian period in the earth’s development, also referred to as the “Cambrian explosion”, and represents an anticipated period of rapid development and a promising new era for the company, its employees and shareholders, as well as for Zimbabwe. 

Turner said there will be a change in directors with the five London-based directors being replaced by local ones. The four new directors are Ian Perkins as non-executive chairman, Edzo Wisman as executive director and Chief Executive Officer, Itai Mazaiwana as non-executive director and Fred Jones as non-executive director.

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