Zimbabwe Stock Exchange listed company, Proplastics Limited posted an after tax profit of US$1, 358 444 in its end of year results for 2017 representing a 100 percent increase compared to the same period last year.
According to the group chairman, Gregory Sebborn, turnover for the period under review increased by 14 %.
“Turnover at $16 103 935 was 14% up on the previous year,with overall volumes increasing by 5%.
“Improved factory efficiencies resulted in cost of sales being contained to a 6% increase despite inflationary pressures and resultant gross profit was a healthy $4 801 711,” said Sebborn.
He added that overheads increased by 8% while financing costs were reduced by 59%.
“Overheads did increase by 8% but financing costs were reduced by 59% as a result of stronger cash flow management and the resultant decrease in debt.
“EBITDA improved by 61% to $2 912 061 and profit before tax was 126% ahead of prior year at $1 974 667.
“The financial position remains solid and gearing reduced from 10% in prior year to 4% as the Group reduced a significant proportion of its debt,” he said.
Meanwhile the Group Chief Executive Officer, Kudakwashe Chigiya added that debt equity ratio eased to 4% from 10% in prior year.
“Total borrowings at year end were $374 667 compared to $916 000 at the end of the previous reporting period,consequently the debt equity ratio eased to 4% from 10% in prior year.
“Cash and cash equivalents closed at $4 396 251 on the back of tight credit controls and delays in settling foreign liabilities due to shortages in foreign currency allocations,” said Chigiya.
