Gulliver seeks investors

Published: 24 January 2014

Distressd Gulliver Consolidated Limited (Gulliver) seeks investors to help turn around its waning fortunes.

The industrial and engineering group - delisted from the Zimbabwe Stock Exchange in July last year - was placed under provisional judicial management after failing to perform due to a debt burden and high administrative costs coupled with acute liquidity challenges.

Its judicial manager, Reggie Saruchera of Grant Thornton Camelsa, yesterday invited interested investors to submit their proposals.

"Parties interested in investing in the group are required to register their interest with Gulliver Transaction Advisors at Grant Thornton Camelsa Chartered Accountants," he said.

The industrial conglomerate, which is technically insolvent, urgently requires funding to clear between $4 million and $5 million creditors with financial obligations to about 100 of the firm's workers also top of the priority list.

As part of measures to resuscitate the company, it slashed its salary obligations from $90 000 to $20 000 per month, while excess staff was sent on unpaid leave until the company returned to profitability.

The group is forecast to generate at least $5,1 million in the next four years without factoring in major projects underway which could increase revenue.

Gulliver's troubles started in 2009 after the introduction of the multi-currency.

In 2010 and 2011 the company suffered heavy losses of

$4,3 million and $3 million before tax respectively and $297 000 last year.

Income stood at $2,7 million in 2012 compared to $3,1 million the year before while administrative expenses swallowed $1,1 million, almost half of the company's income.

"This is one of the biggest problems why the business went under," Saruchera recently said.

Finance costs also ballooned from $720 000 in 2010 to $1,3 million last year as the company borrowed to recapitalise the business.

Group total assets are valued at $10,8 million while liabilities are at $7,4 million.

Among the company's major creditors are Interfin which is owed $2,3 million, ZB Bank $1,4 million, statutory bodies $1,1 million, employees, $842 000 and Agribank, $314 000.
- dailynews