Innscor misses its 15% revenue growth target for FY13

Published: 05 September 2013

Innscor Africa Limited missed its 15% revenue growth for the year ended 30 June 2013 and will be operating under an aggressive budget in FY14 with an aim of keeping the revenue growing as well as improving margins.

Group CE John Koumides told analysts yesterday that he was "not happy with the results" although the group made a profit.

He noted that "there are some opportunities for the group outside Zimbabwe to generate more cash and improve the group's margins", thus they will continue focusing on expansion.

Commenting on the operating environment, group FD Julian Schonken indicated that the group faced liquidity issues towards the later part of the financial year.

He added that the group continued focusing on growing market share and "improved utilisation of synergies within the group".

Schonken said revenue increased by 5% to $656.3 million from $627.1 million while the Ebitda declined 2% to $67.40 million against $68.53 million posted in the prior year affected by some once-off charges in Colcom.

The group profit before tax decreased by 3% to $59.37 million from $61.13 million while PAT went up to $48.60 million versus $48.51 million recorded in the previous comparative period.

Analysts at the briefing were visibly perturbed and this is likely to happen with investors when they see the financials. The source of disappointment on analysts was not so much that management had done something wrong nor had not done something right, rather it is on the impact the slow down in the economy and rising headwinds have had on business in general.

- zfn