Zimbabwe Stock Exchange-listed roofing and building materials manufacturer, Turnall Holdings’ says exports for the year to December 31 2020 plummeted by 43% compared with the previous year as the impact of Covid-19 took its toll.
This impacted on revenues, which consequently declined 4% to ZWL$999.5m during the reviewed period from ZWL$1.038bn reported in 2019.
In a statement accompanying 2020 results, Turnall chairman Bothwell Nyajeka said: “(Exports) were affected by border closures, international cargo logistics constraints and lack of competitiveness in the regional markets,”
Turnall’s inflation adjusted net profit for the year declined by 62% to ZWL$165m from ZWL$434m reported in prior year.
The group’s sales volumes for the year were 9% above the previous year due to the fact that the demand for the company’s products was high during the year.
Turnall operating activities generated ZWL$320m , of which ZWL$162m was invested into working capital, ZWL$118m on capital expenditure and ZWL$20m on loan repayment.
Cash and cash equivalents increased by ZWL$7m while earnings per share stood at 33.37c compared to 88.03c, impacted by a higher tax charge, following utilisation of accumulated tax losses in 2019.
Going forward, the company is bullish about the growth prospects in the construction industry, particularly in the individual housing projects due to the national housing backlog continues to grow.
And the company is optimistic that the new regulations of prohibiting the sale of unserviced stands are expected to increase the demand for water and sewer reticulation pipes in the near future.