Times Of Swaziland: NPC REVENUE SURGES BY 17%

NPC REVENUE SURGES BY 17%
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Nhlanganiso Mkhonta on 06/11/2024 06:54:00


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.