Cafca reports a 25% rise in turnover

Turnover for the twelve months was 25% up on the corresponding nine month period resulting in an operating profit of $2.382 million which was 19% greater than the nine month period reflecting a stagnant and difficult market.

The reporting period is a twelve month period against a nine month comparative as the financial year end was changed to be coterminous with that of the majority shareholder for the purposes of consolidation.

Finance charges for the twelve month period were $89 780 against the nine month period comparative of $170 776 due to the reduced borrowings and cheaper cost of borrowings.

Profit after tax for the twelve month period and basic earnings per share were 29% up on the corresponding nine month period reflecting a slight improvement on the prior year if one extrapolates the results.

The consolidated statement of financial position shows a further investment of $1,3 million in stock to improve lead times and place consignment stock at strategic customers.   This was financed mainly from the year's profits and borrowings.

The set off of cash versus borrowings reflects a net borrowings position of $688 000 of which $600 000 was a once off investment in aluminium raw material to overcome a short term market shortage in the product.

Cafca intend to maintain borrowings below the current usage until such time as the current uncertainty in the economy improves. Due to uncertainty in the environment, Cafca are forecasting to at least maintain current throughput for the next twelve months with any downturn in demand being replaced with recycling copper barter deals.

The Directors have again waived the declaration of a dividend as our cash flow priorities are to first eliminate all borrowings and then to invest in upgrading plant.