Zimpapers slumps to $1.4m loss

via Zimpapers slumps to $1.4m loss 30 September 2014

MEDIA group, Zimpapers plunged to a $1,417 million loss after tax in the half-year ended June 30 from a positive out turn of $358,000 the previous year as revenue tumbled due to high finance costs  and a worsening economic environment.

Zimpapers operates 12 publications, a commercial printing press, a radio station and two digital platforms.

Revenue declined by six percent to $21 million in the prior year while gross profit also declined to $16,2 million from $16,5 million.

Chairman Charles Utete said the company’s current liabilities stand at $21,7 million, exceeding its current assets by $8,1 million because of internal and external obligations which are difficult to liquidate.

He said the loss position was exacerbated by the huge finance costs after short-term borrowings the company took to recapitalise its operations.

The benefit of the recapitalisation is likely to be felt in the second half, he added.

“The company’s overheads remain relatively fixed despite the decrease in revenues, and both management and the board are seized with the issue of streamlining its cost structures for them to be commensurate with the revenues being generated,” said Utete in a statement.

Zimpapers is restructuring its current internal obligations into long-term liabilities and has agreed payment plans with creditors in line with its revenue inflows.

The newspaper division recorded an operating profit of $1,9 million, down from $3,1 million last year, but all other divisions made losses.

The digital platforms have contributed four percent of total revenue and the company plans to invest more to improve inflows.

The group did not declare any dividends due to the loss in the company.

COMMENTS

WORDPRESS: 7
  • comment-avatar
    revenger avenger 6 years ago

    Did all those bootlickers pay the zpf herald for all those nauseous ar$elicking adverts praising worshipping king robber queen disgrace /? Course not

  • comment-avatar

    ZIMPAPERS – majority owned by Zimbabwe Government and Old mutual PLC.
    Just lost about USD 1.4m – what above article does not tell you is that this company is almost bust – has fixed assets of 29m and liabilities of 31m – in the liabilities is borrowings from FBC bank of 6m that they pay 18% on – yes 18% on a USD borrowing ! – also another disturbing feature is that the company is having to borrow from its own pension fund – 4.6 million in order to stay afloat. It does not say if the Pension fund is receiving 18% on its cash.
    Observation – a pensioner or potential pensioner in this organisation will never see his pension money. Who are the auditors as no mention is made of that small problem.
    Looks like ZIMPAPERS will go like all other parastatals in ZW – broke !

  • comment-avatar

    Hooray, close them down, soon is not soon enough!

  • comment-avatar
    Mlimo 6 years ago

    Damn lost my source of loo paper if they go broke

  • comment-avatar

    ZimPapers is the Praise and Worship Choir for the ruling Party.

    What do they do except print propaganda for the Ruling Party?

    maybe once they are broke and gone we will be spared the lies.

    The silence will be most welcome

  • comment-avatar

    Its called God’s judgment!!! Repent!