TSL management confident of period ahead

Published: 12 March 2014

TSL Limited group Chief Executive Washington Matsaira told the AGM this afternoon that they are confident that they will continue to deliver a steady growth as they keep working to mitigate the impact of adverse factors such as liquidity challenges.

"We remain confident that we will continue to deliver steady growth…We are however, very mindful of some of the challenges facing our environment and these are well covered in discussions and not least obviously the liquidity challenges.

"We're taking steps to mitigate the impact of these adverse factors so that we stay on target," he said.

Matsaira indicated that seasonal trends in tobacco and the slight delay in the start of the 2014 selling season were some of the challenges in the industry to date.

He added that the other challenge is on the softer prices experienced at the start of the season and in the case of tourism, Matsaira told the meeting that subdued volumes remains an issue.

"On the positive we believe that the larger tobacco crop will positively impact our tobacco-related business and it is increasingly clear that the crop will definitely be up on last year," noted Matsaira.

Commenting on TSL Classic, he noted that the contract purchases have commenced and they are on track to meet the budgeted production.

He added that they remain confident that recoveries will be good. Meanwhile, on TSF, Matsaira indicated that it is on track to deliver at the same levels for 1H13.

Auctioning season started a week later that in 2013 and was characterised by "softer prices and slower deliveries" but the crop is still projected to be up on 2013.

Moving on to Propak, he said the division made a reasonable start to the trading season and they are making engagements to regain market share lost over the years.

He added that they have increased distribution points in order to improve the product availability to the market.

Under logistics, Matsaira noted that it had a "positive start to 2014" as the impact of the business model review is beginning to show.

"Integration of Premier Forklifts into TSL was completed…The group is also targeting new clients in handling and distribution and a positive upturn is expected on the back of the tobacco season that has started," he said.

Furthermore he told the meeting that the search for suitable long term technical partners in the logistics business continues.

On real estate operations, Matsaira stated that the business had a positive start to the year with revenue and profitability marginally ahead of budget.

"With respect to trading operations, the process of finalising the delisting of Chemco is on track. We expect that the EGM will be held on 13 March," he noted.

The group's directors were re-elected and fees of $57 590 approved while auditors Ernst & Young were re-appointed with remuneration of $247 052 also approved.

- zfn