9th Jun 2015 11:53
LONDON (Alliance News) - Investment company Cambria Africa PLC Tuesday said revenue rose in both its Payserv and Millchem investments in the six months to February 28, as it continues discussions to secure funds for litigation costs and improve its working capital.
Payserv, which provides payments and business process outsourcing services in Zimbabwe, achieved a 21% rise in sales in the half year, to USD2.6 million from USD2.2 million in the same period the year before. Earnings before interest, tax, depreciation and amortisation grew 34%, while pretax profit was in excess of that achieved in the full financial year ended August 31, 2014.
Millchem, which distributes industrial solvents and metal treatment products in Zimbabwe, achieved revenue of USD3.1 million in the period, more than half again the USD2 million made the prior year. Losses in earnings before interest, tax, depreciation and amortisation, and in pretax profit only slightly improved on the results of the previous full financial year, as the company continued to heavily invest in regional expansion and in broadening its offering with various new suppliers, Cambria said.
Cambria added that the proceeds made through its recent share placement have been used to provide for the legal fees in relation to its litigation against Lonrho, for group overhead, and for working capital for its existing two investments.
The company said its working capital is tight and is reliant beyond the short term on raising further funds. It is in discussions with Ventures Africa Ltd, which holds 50.5% of its issued share capital, regarding the provision of further funds, but in the meantime has been provided with a USD1.1 million standby facility from Venture as security for litigation costs.
Shares in Cambria were suspended from trading in February pending the publication of its results for the last financial year, and under AIM rules, if these results as well as its interim results are not published by August 17 its shares will be cancelled.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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