CONVEYOR belts manufacturer General Beltings says its order book is expected to remain firm in the last half of the financial year to December, although the conversion of the orders to turnover will hinge on the availability of foreign currency to timeously procure raw materials.
By Melody Chikono
Company chairperson Godfrey Nhemachena said the firm’s strong order book has asserted the company’s market position.
Nhemachena said demand for products was being driven by the growth experienced in the mining and agricultural sectors.
“Turnover surged by 25% at US$2,5 million when compared with same period prior year despite a significant outstanding order book due to raw materials constraints. The firm order book since the beginning of the year has asserted the company’s market positioning and confidence,” he said.
“The commissioning of a specialised modern mixer at the rubber division in line with the technical partnership has started to bear fruit through enhanced operational efficiencies and reduced order cycle time. Programmed plant maintenance is positioning the operating unit’s ability to convert orders to meet increased demand.”
Although the order book is expected to remain firm, the conversion of the orders to turnover will depend on the availability of foreign currency to timeously procure raw materials.
The company incurred a loss of US$138 686 from US$254 229 in the same period last year.
Basic loss per share stood at 0,00026 from 0,00043 same period last year.
Overall volumes at 467 metric tonnes were 6% above volumes recorded in the same period the prior year of 441 metric tonnes with all the units registering growth.
The rubber division registered a 36% volume increase as the unit benefited from the technical partnerships and improved market positioning while 17% growth was attained due to increased throughput.
The chemicals division volumes increased by 2% on prior year with a favourable product mix while 36% growth was recorded. Overall gross profit increased 28% to US$ 688 000.
The chemicals division volumes increased 2% on prior year with a favourable product mix.