Prospects for asbestos and piping company Turnall Holdings are bright this year after it posted a 9 percent increase in revenue in the half year ending June 30 and a corresponding 42 percent reduction in expenses. Corresponding to these improvements was an increase of sold tonnage, from 27 144 last year to 29 435 in the quarter under review.

These positive results come after the company posted a staggering $3, 5 million loss last year. In half year results released on Wednesday, Turnall managing director Caleb Musodza said the company had managed to broaden its supplier base and in the process achieved better pricing, quality and more efficient utilisation. “We restructured our loans to affordable terms, implemented a robust cost base management process and broadened our revenue base through better selling focus,” he said.

“With 68 percent of our cost of production consisting of two main raw materials, namely fibre and cement, we have done a lot of work on these two and significant reductions will be realized in the second half,” he added. “Selling and distribution expenses have decreased by 10 percent and administration expenses have fallen by 53 percent, all this feeds into the realised profit.”

“The recovery of bad debts has also been a major priority, and we recovered over $290 000, together with right sizing the organisation in line with the strategic plan,” Mr Musodza said. Enacted after the staggering loss of last year, the company’s three year strategic plan seeks to make it a manufacturer of all construction materials and not just pipes and asbestos as in the past.

The plan also places focus on a deliberate exports shift to more profitable countries. Endurite sheets remain the flagship product, with concrete tiles also contributing significantly. Mr Musodza, however, lamented the high cost of finance whose average has maintained at 16 percent. “Management is working to refinancing the loans we have with cheaper ones and an efficient management of the portfolio through proactive communication with the banks,” he said.

Turnall’s laborious debts with ZIMRA and the Pension Fund have also been placed under agreed payment plans and the company expects to have traded itself out of the debts by December 2017. — New Ziana

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