CFI Holdings posts RTGS$4 million profit before tax

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By Alois Vinga

DIVERSIFIED conglomerate, CFI Holdings Limited, has posted an RTGS$4 million group profit before taxation, in a development signaling a consistent recovery trajectory by the entity after years of poor performance and loss making.

Soon after the inception of a new management board, the CFI registered a profit of RTGS$1.5 million in 2017 before the 2018 surge to RTGS$4.060.993.

The group is awakening from serious difficulties which saw it recording losses of RTGS$13 million in 2014, RTGS$15 million in 2015 and RTGS$47 million in 2016.

CFI Holdings with interests across the economic spectrum, received total revenueS of RTGS$61 million with earnings per share increasing to RTGS$3 up from RTGS$0.83 cents in the previous year.

Briefing stakeholders at the entity’s Annual General Meeting Tuesday, CFI Holdings Limited, acting group chairperson, Itai Pasi said that the group’s balance sheet is stronger and well positioned to under write further growth in the coming year, following last year’s recapitalisation of both Glenara Estates and CFI Retail.

“The group reduced its gearing by retiring RTGS$1.1 million worth of borrowings which will further reduce borrowing costs in the second half of the year. All in all, the group expects a reasonable outturn for its half year end, which we will report on by the end of May 2019,” she said.

Also speaking at the function, CFI Holdings group chief executive, Shingirai Chibanguza said the listed concern continues to recover after years of corruption and mismanagement through implementation of robust cost cutting initiatives.

He said expenses during the five months to end February 2019 increased by 26 percent, when compared to prior period, as the group tried to cushion employees through cost of living adjustments.

Chibanguza pointed out that the group had invested RTGS$1.2 million in distribution trucks and over 459 hectares of dry land soya beans had been irrigated in addition to table potato production.

The CFI boss said that the group is now seized with finalising layout plans on the properties side to kick start the development of projects.

“Given the reduced gearing, improved profitability and cash generation by the business, the group is now on an exciting growth trajectory, and the new management and board are focused on consolidating the recovery of the group for the benefit of all stakeholders,” he said.