NPC REVENUE SURGES BY 17%

MBABANE – Nkonyeni Pre-Cast Limited was able to reach 78 per cent of the targeted revenue in seven months while using nearly E7 million of invested funds.

According to the information memorandum which outlines the company’s strategic plan after listing on the Eswatini Stock Exchange (ESC), the company anticipated raising up to E75 million in the first year of investment funds being used. The anticipated funds were E50 million from the sale of shares and E80 million from the bond. The company’s Managing Director (MD), Marissa van Zuydam, revealed how the company received only E6 935 102 raised through the selling of shares and bonds to realise remarkable progress towards attaining targets within the first six months of receipt of proceeds.

Using this money to recapitalise the group of companies, the company was able to achieve E50 million in revenue, which is a 17 per cent increase from the previous financial year.
She stated how instead of the E1.7 million originally targeted for Chemical Solutions’ blending plant and its recapitalisation, E1.4 million was used and the subsidiary was able to increase its revenue by 181 per cent when compared to the previous years. Highlighting some of the achievements, she stated that the company was able to use E3.3 million towards commercialising sand mining, plant upgrades and increase stock within the NPC plant, E0.5million towards transaction fees and E1 million towards increasing stock levels at Hardware Solutions.

“The difficulty in raising funds through equity and bond impacts the progress of strategic plan and growth plans,” she said. Other factors included increases in fuels prices, electricity and the costs of maintaining aging vehicles and the two plants. She relented that the inclement weather which saw widespread destruction of roof tiles country-wide caused a decline in demand because of misconceptions in market. The group reported a 17 per cent growth in revenue compared to prior year.

• Interest paid increased to E1.2 million in 2024 as a result of cashflow constraints.
• Listing fees also had an impact on the profitability of the business with E1.4 million allocated towards the listing, through an increase in marketing and advertising costs, consulting and transactional fees, and costs associated with ensuring legal compliance of the business.
• Audit fees increased by 340 per cent to E463 000 factoring in the amended reporting system as well as six month interim fee costs.
• NPC has taken a cost of E295 000 to write off bad debts in the year. These are currently in litigation.
• While the business has maintained an average growth of 44 per cent, the increase in operational costs contributed to the business making a loss. Major operational costs that increased were fuel by 11 per cent, electricity 36 per cent and an increase in plant and vehicle maintenance costs 89 per cent.

However, the volatile industry/market has stabilised and is exhibiting signs of corrective momentum.
NPC achieved 78 per cent of its projected revenue budget. This budget was based on E50 million investments from equity and E80 million proceeds from the bond. NPC achieved this within a seven month period post receipt of proceeds from listing. Overall, there has been an improvement in the balance sheet compared to financial 2023.

• NPC Balance Sheet illustrates that the overall current liabilities have reduced by E 800 000. Bank overdraft has been reduced by E1.2 million as part of it was converted to a short-term loan. Creditors remain high, as a result of long term debtors; however this has improved post financial year.
• The business’ current assets have increased by E1.4 million. This is a result of an increase of inventory of 13 per cent, increase in trade receivables and a 141 per cent increase on cash at hand.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: