1st Feb 2019 08:54
LONDON (Alliance News) - Shares rose in Cambria Africa PLC on Friday as it said its profit rose more than fourfold in its recently ended financial year, with revenue up by 10%.
Shares in the Zimbabwe-focused investment company jumped 37% at 1.34 pence on Friday.
Pretax profit for the year to the end of August was USD3.0 million, up more than fourfold from USD716,000 the year before.
The profit hike was due to a substantial reduction in operating costs to USD4.0 million from USD5.0 million, as well as 10% growth in revenue to USD9.4 million from USD8.6 million.
In the period, Payserv Africa's revenue increased by 19% to USD7.6 million from USD6.4 million and pretax profit by 25% to USD3.1 million from USD2.4 million.
Cambria's other business Millchem, posted a 16% drop in revenue to USD1.9 million from USD2.2 million, though it swung to a posttax profit of USD217,00 from a loss of USD166,000.
Looking ahead, Cambria said it was well positioned to stand against uncertainties, caused by the Zimbabwe government introducing measures said to quash hopes for foreign investment.
"The outlook for direct foreign investment and balance of payment support for Zimbabwe significantly dimmed following violent protests and the ensuing clampdown by government forces. Historically, companies that have survived such seismic shifts in the country's fortunes have come back stronger and more profitable," Cambria said in a statement.
"Cambria expects to survive the dislocations created by these events. As some investors turn away, Cambria's management feels that it will have an opportunity to capitalize on new opportunities at significantly lower investment costs than before," the company added.
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