TSL sees lower H1 due to delayed start to tobacco season

TSL sees lower H1 due to delayed start to tobacco season
tobacco-farm

National tobacco production is projected to be down by between 20 percent and 30 percent yet overall, prices are expected to be up on 2015.

SLOW activity in agriculture due to the drought and a shift in the tobacco auction season, will see TSL Limited report lower numbers at half year.

Chief executive Washington Matsaira told the AGM  that the shift in the tobacco season, which was moved back by four weeks will affect the group’s numbers which will however be made up for in the second half.

National tobacco production is projected to be down by between 20% and 30% yet overall, prices are expected to be up on 2015.

The Hessian uptake had been impacted by delays in the opening of auction floors and a new hessian pricing model is expected to increase sales volumes.

Matsaira said in the agriculture cluster, Agricura Trading had been the most affected due to a decline in summer hectarage.

Matsaira said the Logistics cluster performance remains solid under a difficult environment.

“Distribution and General Cargo volumes were adversely impacted by a slower economy while the Forklift business is experiencing margin pressure. However performance remains satisfactory,” said Matsaira adding that focus will remain on expanding customer base.

He said the freight forwarding and customs clearing business is contributing strongly to the bottom line with synergies between Key Logistics and other units in the cluster paying off.

“Vehicle rental performance continues to be steady in the current environment,” he said.

In the Real Estate operations, Matsaira said financial performance continues to be steady and Occupancies are solid with voids at under 5%.  He said the drive will be to grow third party tenancy.

At the AGM, directors fees were approved at $166 000 and Auditors fees at $300 000 before VAT.

TSL did not trade on the Zimbabwe Stock Exchange  but has a previous price of 13.5c while foreign interest in Delta saw the broader market turnover closing Wednesday on $1.15 million. Foreign buyers snapped up $1.13 million worth of shares in Delta but overall there were more foreign sellers at $1.14 million. The number of trades was at a low 19.

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