Jere says the group’s order book has been full throughout the year after the company’s pipe line plant was re-commissioned last year. He says Turnall is still benefiting from tobacco, maize and cotton sales and local authorities’ projects.
“Volumes have already reached 45 000 tonnes and therefore the outcome for the year is going to be higher than had been forecast previously,” Jere said. “We are expecting 60 000 tonnes by year-end, 10 000 tonnes more from the previous projection.”
The pipeline plant had been under care and maintenance for two years. Capacity utilisation currently stands at 75% compared to 60%-65% during the first half of the year.
Jere believes sales potential remains huge and could see additional sales rising to between 70 000 tonnes and 90 000 tonnes by 2015.He said turnover, which stood at US$19 million at the end of August, had increased by US$3,6 million in September.
Turnall’s chairman, Herbert Nkala, said the company’s turnover for the interim period ending June 30 amounted to US$13,58 million compared to US$3,9 million, an increase of 289%, with the cost of sales advancing by 382% in the same period to US$9,3 million.
“Administrative expenses of $2 million compared to US$761 369 accounted for 15, 3% of turnover compared to 16, 2% at year end. Selling and distribution costs showed a downward trend to 5, 3% from 6, 2% at year end,” he said
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The company’s balance sheet grew to US$37,27 million from U$32,79 million due to prepayments on the non-asbestos machine being installed in Bulawayo. US$1,56 million in trade creditors was attributable to the Mtshabezi Pipeline Project, which had been returned to government post half year as there had been a requirement to use local fibre.
Turnall is one of the few companies listed where ownership is on sale, and some prospective buyers are looking to offer as much as 9c a share which the counter had been hovering around over the past week.
Paul Nyakazeya
