Revenue for the interim period to March was static at US$10,9 million, while margins remained tight in the face of competition from imports. Operating profit for the period was flat at US$1,2 million, while borrowings declined by 65,3%. The company said borrowings would be kept to a minimum, with any cash generated appropriately channelled to strategic debtors or finished goods inventory.
Cafca said debtors were being contained at the expense of revenue by not selling to companies that had exceeded their credit terms. The company is therefore not anticipating any revenue growth in the short term as it continues to enforce stringent credit limits and battle tight liquidity in the market.
Earnings per share marginally improved to US2,7 cents, up from US2,6 cents in the same period the previous year. The company said exports were currently at 20% of volumes in the last quarter and would be grown in the traditional markets, while assistance would be sought from major shareholders to access niche markets.
Net financing costs significantly improved by 15% to US$63 885, in the period from the US$75 300 recorded the previous year in the same period. Inventories improved by 27% to US$6,1 million, up from US$4,4 million in the comparative period.
Cafca said its finished goods inventory had been deliberately increased to reduce lead times. Finished goods stockholding was increased to around 300 tonnes valued at US$3 million. Purchases from CBI- Electric African cables, which is a division of ACT (Pvt) Limited, increased to US$6,2 million, up from US$3,5 million recorded in the previous year.