Cambria happy with Zim investment prospects

Millchem’s revenues grew 10 percent to $5,3 million during the period under review

Millchem’s revenues grew 10 percent to $5,3 million during the period under review

Business Reporter

Southern Africa-focussed investment company Cambria has reiterated its commitment to investing in Zimbabwe saying the country presents best prospects for investment.In a statement accompanying the company’s results for the full year ending August 31, 2015, chief executive Mr Samir Shasha said that they will continue to focus on Zimbabwe as they continue to formulate their investment strategy.

The board was in the process of formulating its investment strategy to implement strategic value-creating acquisitions as appropriate opportunities arise.

“We will continue to focus on Zimbabwe, which we believe provides the best opportunity for successful investment and growth in the short to medium term,” he said.

Cambria has two operations Millchem, a value-added chemicals distributor with a leading market position in Zimbabwe and Payserv that provides EDI switching services (Paynet), ‘payslip’ processing (Autopay), and payroll based microfinance loan processing (Tradanet), whose main operations are domiciled in Zimbabwe.

Meanwhile Cambria recorded a 12 percent jump in profit for the full year ending August 31, 2015 to $5,6 million from $5,01 million during the prior period.

The profit came on the back of a 12 percent increase in revenues from $9,4 to 10,3 million. Cambria has two operations Payserv and Millchem.

Cambria’s EBITDA from continuing operations for the year ended under review was $1,65 million compared to an EBITDA loss of $3,75 million for the 2014 financial year.

The company said EBITDA for 2014 was impacted by once-off costs of $0,7 million incurred on investigating the acquisition of CelPay Zambia which was not concluded following the discovery of a significant deterioration in the financial position of CelPay Zambia while that of 2015 continued to be effected by Payserv’s investment in expanding its presence and offering in Zambia, the costs of which are expensed in full.

Millchem’s revenues grew 10 percent to $5,3 million during the period under review from $4,8 million during the prior period while profits were up 9 percent to $892 000 from $821 000.

Overheads were negatively impacted by the expansion and investment in establishing Millchem Zambia and Millchem Malawi under the Group’s previous management. It closed Milchem Malawi while Millchem Zambia was sold.

Payserv’s revenue for the period was up 9 percent to $5,01 million from $4,5 million during the prior period while profits shot up 13 percent to $4,7 million from $4,1 million.

In terms of its operations Paynet that provides Electronic Data Interchange (EDI) services to all the banks and building societies in Zimbabwe, as well as to over 1,500 corporates, processed 17,3 million transactions compared to 16,4 million a year earlier, representing a 5,5 percent increase.

Autopay, which provides payroll services to more than 150 customers, processed over 345 000 pay slips compared to 313 000 a year earlier, representing a 10 percent increase.

Tradanet processed approximately 134 000 loans compared to 121 000 loans during the period, representing a value of $176 million against $154 million for 2014.

Looking ahead Mr Shasha said the company was now focused on creating value for shareholders through its investments in Millchem and Payserv.

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