BUSINESS REPORTER
Listed roofing and building materials manufacturer, Turnall Holdings Limited is finally paying out a dividend for the first time in 14 years, Business Times can report.
At ZWL$0.03 per share, this is the first payout since 2007.
The dividend amounts to ZWL$16.4m and represents a cover of 4.5 times.
According to Turnall’s financial statement for the six months to June 30, 2021, the dividend will be paid on October 1, 2021, to holders of the company stock at the close of business on September 24, 2021.
“The board has declared an interim dividend of ZWL$0.03 per share for the half-year ended June 30, 2021. The last dividend payout was made in 2007. This is the confidence that the board has in the company on its recovery path,” board chairperson, Bothwell Nyajeka said.
Turnall’s share price has jumped more than 300% to ZWL$4 this week from ZWL$0.93 in January this year. Its market capitalisation stood at ZWL$1.98bn on Monday this week.
The announcement of a dividend comes alongside Turnall’s revenue jumping 52% to ZWL$637m in the period under review from ZWL$419m in the prior comparative period.
Volumes grew 21% in the reviewed period.
Profit for the company, however, dipped 36% to ZWL$27m in the period under review from ZWL$58m in the same period last year.
Nyajeka said management was optimistic that the business would continue to record profits and maximise shareholder wealth.
“Focus is now on re-capitalising the plants and improving production efficiencies while reducing production costs.
“Cost containment and business rightsizing will remain a top priority to ensure profitability.
“Plans are underway to resuscitate the asbestos plant in Harare to reduce the cost of transferring the product from Bulawayo to Harare.
“Pricing issues have been a major challenge particularly on the export market owing to depreciation of currency within the region.”
Nyajeka said the company withstood the harsh operating environment to record growth in business compared to the same period last year.
Recently, Turnall Holdings said it has set up procurement structure that will ensure uninterrupted supply of critical raw materials even during lockdown periods.
The approach, Nyajeka said, would improve the company’s performance in the near future.
Electricity, fuel, and labour costs, Nyajeka said, remained high and were significant cost drivers over the period.
