CAMBRIA Africa Plc expects savings of about US$400 000 in the current financial year in company compensation thanks to a recently completed re-organisation of the group, a company official said.
Cambria CE Samir Shasha said the investment company continues to enjoy an exchange rate of US$1:1 bond. Zimbabwe’s currency, the bond note, which the central bank claims is at par with the US dollar, is trading at 350% to the greenback on the parallel market.
While the company recently warned its shareholders of the impact of shifts in parallel exchange rates, premiums on the black market have significantly fallen from the 600% levels.
Payserv’s consolidated earnings before interest, tax, depreciation and armotisation (Ebitda), excluding reorganisation costs of US$262 000, increased 37% to US$$3,63 million in FY 2018 from US$2,65 million in FY 2017. Profit after tax (PAT) increased 34% to US$2,38 million from US$1,78 million in FY17, while revenues increased by 19% to US$7,57 million from US$6,37 million in FY17.
“Payserv Zimbabwe continues to receive funding at 1:1 to the US Dollar for payment of license fees and the repayment of loans. While Payserv anticipates a rise in overhead costs, the recent re-organisation should save the company about $400 000 annually in cost-to-company compensation. These savings should somewhat cushion the Company from expected inflationary pressures,” Shasha said.
He said Millchem has received a portion of its import requirements at 1:1 to the US dollar and anticipates the new Reserve Bank of Zimbabwe monetary policies will allow the company to externally fund increased imports of raw material and repay the money. Such funding will alleviate a significant constraint to Millchem’s business model over the last two years, Shasha said.
Millchem’s Ebitda increased to US$239 000 during the period from a loss of US$143 000 in FY17 as a result of improvement in gross margins and a 45% reduction in overheads.
Cambria reduced its cash position in Zimbabwe to minimal levels at the end of FY 2018, investing its available cash in the beneficial ownership of Radar Ltd shares.
“The timing of this investment prior to current economic turbulence, which commenced in early October, has preserved significant shareholder value. Cambria’s cash resources outside of Zimbabwe stand at US$1,1 million. The company is actively considering a number of acquisitions,” Sasha said.