27th Jan 2017 15:06
LONDON (Alliance News) - Cambria Africa PLC on Friday said its loss narrowed in its recently completed financial year after a drop in revenue, but Cambria said its performance since the end of the year has been considerably better.
Cambria Africa shares were 30% higher on Friday at 1.30 pence per share.
Cambria said it slashed central costs by almost half in the year to USD1.1 million from USD2 million, whilst cashflow turned positive to generate USD3.6 million versus an net outflow of USD2.9 million the year before.
The investment company, building a portfolio of investments primarily in Zimbabwe, reported revenue of USD8.6 million in the year to the end of August, falling from USD10.3 million a year earlier.
However, Cambria booked an operating profit of USD293,000 versus a USD1.9 million loss the year before. The pretax loss for the recent year amounted to USD348,000, compared to the USD2.7 million loss in the last financial year.
Payserv, Cambria's largest subsidiary by revenue and profit, doubled profit after tax in the year whilst revenue was 7% higher. Its other unit, Millchem, was still loss-making but this was narrower than the prior year, Cambria Africa said.
Cambria Africa said its performance in the four months to the end of 2016 was considerably better.
Compared to the corresponding period a year earlier, the company said Payserv increased revenue by 23% to USD2.2 million from USD1.8 million. Payserv's earnings before interest, tax, depreciation and amortisation was 52% higher at USD850,000 from USD560,000, and pretax profit was more than double at USD660,000 compared to USD286,000.
Millchem kept flat revenue of USD1.2 million, but narrowed its loss before interest, tax, depreciation and amortisation to USD38,000 versus USD55,000, while the pretax loss amounted to USD47,000 versus a USD65,000 loss a year earlier.
By Joshua Warner; [email protected]; @JoshAlliance
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