Turnall Holdings Limited is set to dispose 32.55 percent of its shares under National Social Security Authority (NSSA) and is advising its shareholders to continue exercising caution when dealing with their shares until results of such development are known.
In a statement released by the company Board Chairman, Mr B P Nyajeka said that if the transaction of disposing NSSA shares is successful it could have material impact on the value the company’s shares.
“Directors wish to advise shareholders that one of the company’s shareholders NSSA is still engaged in a transaction to dispose its 32.55 percent shareholding in the business. The transaction if successful, could have a material impact on the value of company’s shares.
“The board therefore advises shareholders to continue exercising caution when dealing in their Turnall Holdings Limited shares and to consult their professional advisers before in their shares until such time as the results of the said development are known,” read the statement.
The company has been doing well in the past year though faced with covid-19 challenges.
“Demand for the company’s products was high during the year. The sales volumes for the year were 9% above the previous year despite the company having lost a full months’ trading due to the lockdown.
“Operating activities generated $320 million of cash, of which $162 million was invested into working capital, $118 million on capital expenditure and $20 million on loan repayment. Cash and cash equivalents increased by $7 million,” read part of the statement.
Turnall Holdings Limited hailed the government for reintroducing the United States Dollar as a legal means of exchange.
“The return of the United States dollar as a legal means of exchange in the country, together with the introduction of the foreign currency auction system helped stabilise the exchange rate and price stability. The company is now raising enough foreign currency locally to meet its import requirements,” read the statement.
“Turnover for the year was 4% lower than the previous year. The company generated most of its revenues in USD and was converted at the fixed exchange rate ruling at that time resulting in the decrease in revenue compared to the previous year.The gross proft percentage remained at 33% for the two comparative periods and operating expenses were 27% of revenue compared to 26% in the previous year. Export volumes were 43% lower than the previous year as they were affected by border closures, international cargo logistics constraints and lack of competitiveness in the regional markets. The Group inflation adjusted net proft after tax for the year was $165 million compared to $434 million for the previous year. Earnings per share were 33.37c vs 88.03c, impacted by a higher tax charge, following utilisation of accumulated tax losses in 2019,” read the statement.
The company believes there are good prospects for growth in the construction industry.
“As the construction industry and particularly individual housing projects as the national housing backlog continues to grow. The new regulations prohibiting the sale of unserviced stands are expected to improve demand for water and sewage reticulation pipes. There is hope in the longer term with the implementation of vaccinations,” read the statement.
He added :” The COVID-19 pandemic had a major impact on the economy and the business with the resultant lockdowns and movement restrictions affecting trading activity. The informal sector, which contributes significantly to the economy was the worst affected by trade restrictions and this reduced disposal incomes and products demand.”
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