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Celsys Limited revenues up 65pc
15/12/2012 00:00:00
by Roman Moyo
 
Rising revenues ... Celsys Limited
 
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CELSYS Limited has announced a 65 percent increase in revenues for the year ending August 31, 2012 due to improved efficiencies in production.

The Zimbabwe Stock Exchange-listed company says its returns jumped from US$1, 1 million to US$1, 8 million.

Yet, it revealed Friday that it still requires massive capital injection to continue with its expansion plans and rake in more profits for shareholders.

The increased efficiencies in production and a turnaround due to capital expenditures made in prior years allowed the gross profit to rise by US$348, 000 to US$571, 000 with margins improving from 20 percent in 2011 to over 31 percent in 2012.

Directors say Celsys Print accounted for 85 percent of the revenue while Celsys Technical Service contributed the balance of 15 percent.

“Administrative expenses increased by 40 percent for the year under review, the major cost driver being staff costs which increased by 22 percent alone,” said company official Paul Turner.

He said as a result, losses from continuing operations, before taxation and de-listing expenses increased by US$301, 000 to US$872, 000.

Cost associated with the Scheme of Arrangement have been disclosed separately as these are one-off expenses that amount to US$151, 000.

Interest costs related to third party lenders are the only interest costs that have been charged to the income statement. Related party loans are now said to be interest-free.

The listing of Cambria Africa Plc has been delayed as the ZSE has requested that both Cambria Plc and Celsys Limited release and publish their audited financial results for the year ending August 31, 2012 before the delisting of Celsys Limited and the admission of Cambria Africa Plc to the local stock exchange can be effected.

Going forward, Turner said the company continues to operate under constrained conditions as a result of the subdued economy.

However, he said his company continues to make inroads and has managed to retain a greater portion of the market share, thus positioning Celsys as one of the major players in the commercial printing sector.

“The future potential of the economy is dependent upon the continued support of the majority shareholder and in the successful listing of Cambria Africa Plc on the Zimbabwe Stock Exchange.”



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