Published: 25 September 2013

Conveyor belt manufacturer, General Beltings Holdings (GBH) said on Tuesday it failed to return to profitability despite accessing $1 million from the Distressed and Marginalised Areas Fund (Dimaf) to boost its operations.

The Zimbabwe Stock Exchange (ZSE) listed company said its situation worsened after it posted a $727 767 loss for the half year ended June 2013, up from $616 009 in the comparable period last year.

GBH chairman Mr Godfrey Nhemachena said the company was still on the hunt for more funding.

"Fund raising initiatives will continue in the second half in an effort to improve the company's market positioning and competitiveness," he said, without specifying how much the company required.

"Due to low levels of investment in plant and machinery since dollarization, the sought funds will be applied towards additional working capital and plant optimisation."

Mr Nhemachena said the $1 million Dimaf funding had been used to procure raw materials.

Dimaf is a revolving fund which the government set up to assist struggling companies especially those outside Harare.

The fund provides access at lower interest rates and a relatively longer tenure compared to those offered by commercial banks.

"The accessing of cheaper Dimaf funds resulted in savings in the costs of funds," Mr Nhemachena said.

- New Ziana

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