Business / Companies
Phoenix buys two units from Apex
03 Aug 2011 at 06:46hrs | Views
ZIMBABWE Stock Exchange-listed Phoenix Consolidated Industries Ltd has concluded the purchase of McMeekan Founders and Presicion Grinders from Apex Corporation.
The divisions are expected to improve the profitability of the group, although not this will not happen in this year.
"Whilst these units are profitable, they will not have a material effect on the year's results both in terms of earnings and the overall balance sheet," said Phoenix in a statement accompanying its results for the half-year ended April 30.
The two units have operations that are allied to the mining, transport, construction and agricultural sectors.
Meanwhile, the group registered a loss for the period of US$52 000.
The company yielded an operating profit of US$263 000 from a turnover of US$4,1 million, however, this was weighed down by depreciation and finance costs.
The company's finance costs amounted to US$93 000, with depreciation standing at US$229 000. Excluding Pacprint, which was disposed of in the prior year, turnover for the remaining units increased by US$1,1 million, although the increase did not result in improved profitability due to competitive pricing strategies and significant cost increases.
Last year, Phoenix disposed of its 51 percent stake in the printing operation.
The divisions are expected to improve the profitability of the group, although not this will not happen in this year.
"Whilst these units are profitable, they will not have a material effect on the year's results both in terms of earnings and the overall balance sheet," said Phoenix in a statement accompanying its results for the half-year ended April 30.
Meanwhile, the group registered a loss for the period of US$52 000.
The company yielded an operating profit of US$263 000 from a turnover of US$4,1 million, however, this was weighed down by depreciation and finance costs.
The company's finance costs amounted to US$93 000, with depreciation standing at US$229 000. Excluding Pacprint, which was disposed of in the prior year, turnover for the remaining units increased by US$1,1 million, although the increase did not result in improved profitability due to competitive pricing strategies and significant cost increases.
Last year, Phoenix disposed of its 51 percent stake in the printing operation.
Source - TH
