ZAMEFA says the slow settlements of its export duty draw back claims and VAT refunds by the Zambia Revenue Authority are putting pressure on its operations.
ZAMEFA says the situation is further compounded by the slow payments for product by state utility firm ZESCO.
In a trading statement issued by the Lusaka Securities Exchange, ZAMEFA says the situation continues to increase the borrowing requirements of the company beyond sustainable levels.
The company said it has continued to curtail its operations to remain within its available levels of credit.
It said for the six-month period ended 31st March 2019, the basic earnings per share (“EPS’) and head line earnings per share (“HEPS”) are both expected to be between 190% to 210% higher than those of the corresponding period in the prior year for both the group and for the Company.
“The movement in EPS and HEPS is primarily attributed to the increase in sales volumes for the period and the net foreign exchange gain which resulted from the strengthening of the Kwacha against the dollar between end of September 2018 and end of March 2019.”
It however said that this increase is off a very low base and the company continue to operate at below normal levels of operating activity.
“This level of operating activity is primarily due to the ongoing slow settlement of export duty draw back claims and VAT refunds by the Zambia Revenue Authority and slow payments for product by ZESCO. These slow settlements continue to increase the borrowing requirements of the company beyond sustainable levels and the group continued to curtail its operations to remain within its available levels of credit.”