Diversified financial concern, Imara Holdings Limited, has released a disappointing set of half-year results to October 31, 2009 in which revenue dropped by 17.0 percent to P51.1m.
Profit after tax contracted by 92.3 percent to P388.2m largely due to unrealised foreign exchange losses amounting to P3.9m on the company's non-pula cash holdings. The company's EPS dropped by 99.1 percent to 0.001thebe.
However, despite the poor financials, the company's officials believe the financial institution could not have performed any better under the prevailing circumstances.
"The company has emerged from the global meltdown stronger than anticipated," the company says in a statement accompanying the results. "On a headline basis, revenue and earnings for the first six months of the current financial year were down 17 percent and 93 percent respectively compared with the prior period.The precautionary measures implemented earlier this year have been effective in minimising the downside risks for the period under review.
"However, conventional comparisons with the corresponding period a year ago are not particularly illuminating in this case, as the six months ended 31 October 2008 were near peak earnings, whereas we temporarily moved into a loss-making situation in the second half of the year."
Cognizant of the difficult global operating environment, a primary test for the Group's first half performance has been protecting capital for future growth and building stakeholder confidence without taking unreasonable risks.
"In this respect, moving back into profit in the first half of this financial year is encouraging and, were it not for an unrealised foreign exchange loss of P3.9 million on our non-pula cash holdings, we would have reported a respectable profit of P4.27 million which compares with P5.67 million recorded for the prior period," the statement added.
Imara says a close examination of its trading conditions clearly suggests they are entering a period of renewed growth and sustainable earnings. "Our stockbroking division has recovered strongly, especially on the futures side, while fund inflows and market movements have increased our funds under management beyond budget where the full earnings impact will be seen in the second half," it says.The merger of their trust business with Beresford Trust and Corporate Services in Mauritius to create a new associate company, Imara Beresford International Limited, has already positively impacted earnings for the trust division and prospects for the second half of this financial year are encouraging.
Looking ahead, the company says its strategic development remains completely on track, and if anything, has been reinforced by the improvement in its competitive position as the global crisis took its toll on some market participants.
"In the last three months, we have expanded our geographic footprint and deepened our businesses with the merger of our trust business in Mauritius and the acquisition of equity stakes in stockbrokers in Zambia and Botswana," adds the statement.
The company recently announced that it had acquired a majority equity stake in a local stock broking firm, Capital Securities. The group's negotiations relating to a regional acquisition are still pending and investors are advised to continue exercising caution when dealing in the group's shares.
Source:allafrica.com/
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