In an interview with businessdigest, company director Marshall Jonga said his company was considering converting its Ruwa premises into a modern shopping mall and relocate to its Workington premises .
The development, he said, was expected to generate more income for the group, given the high demand for commercial space in Ruwa.
“Our property in Ruwa is well-positioned because of shortage of commercial space in the area. Demand for space is high and turning it into a shopping mall is expected to create more cash for the group “ said Jonga.
The company said it had initiated a plant modernisation policy which would see the purchase of new machinery in order to reduce production costs and in turn, losses. The group posted an after tax loss of US$ 1,9 million year under review, down 50% the prior year.
Company chairman Philip Chiyangwa attributed the loss to increased depreciation of assets resulting from revaluations which were done the previous year. Depreciation and impairment losses grew to US$1,6 million, up from US$ 0,51 million recorded in 2010.
Assets depreciated by 3,7% to US$48,9 million, down from US$50,8 million in the comparative period. Low revenue streams also contributed to the loss.
In spite of the losses revenue had grown by 5,5% to US$2,1 million. However, operating expenses grew by 66% to US$3,7 million.
The loss per share was up 49% to 41 cents, from the 21 cents recorded the previous year. Chiyangwa said the loss position was reflective of the crisis in the construction and manufacturing industries.
“The quality of the group’s earnings is reflective of the crisis bedevilling the industry we are operating in,” said Chiyangwa. He said most of the company’s capital projects were on hold because of unavailability of funds.