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.”
SOME THING IS VERY VERY WRONG , IF IT WAS KCM OR N OTHER MINING COMPANY THE MINISTER WOUND HAVE BEEN THE FIRST TO DIMONISE THE COMPANY , BA GOVERNMENT PLIZ LEAVE POLITICS OUT OF THIS WE ARE IN TROUBLE NO COMPANY WILL SURVIVE UNDER YO POILCIES
Have you read the story iwe pwiititi?
ZRA not paying ZESCO not paying!
In simple english if your major client and creditors are not paying you are done.
Just like it is now the new normal there is no money to pay anything except for private jets.
This country my brother! We are in trouble!
Metal Fabricators of Zambia Plc. (ZAMEFA) was incorporated in 1968 and was privatised in 1996. The Company became listed on the Lusaka Stock Exchange (LuSE) in September 2004.
So it is stated that, the Ultimate parent company for ZAMEFA is Reunert LIMITED, a company incorporated in South Africa and listed on the Johannesburg Stock Exchange. Reunert Limited holds its investment in ZAMEFA through its wholly owned subsidiary, Reunert International Investments (Mauritius) Ltd incorporated.
?PRODUCT CATEGORY
?LOW VOLTAGE POWER CABLES
?MEDIUM VOLTAGE POWER CABLES
?GENERAL WIRE INSULATED
?ALUMINUM OVERHEAD CONDUCTORS
?COPPER CONFORM PRODUCTS
Isn’t this company gifted? Can it fail to collect what is due to it? Is it unfair competition from China? Is it a matter of Mngmt…
… incompetence. What is going down? Investors will need their dividends.
absolutely shocking and some still dance!! 🙁
ZAMEFA is not owned by zambians but foreigners who for some time have complained about the high cost of doing business. If you follow the trail of their investment events, they are ever pumping in finances from sister companies to sustain ZAMEFA. Now you bring in more frustrations, I see a close-down.
This is why the went to Sale Tax as money is eaten before it hits the account
I have predicted the about these things happen in 2016. Am not prophet but my prediction depends ,how the leadership was composed ,policy making,people involved and my natural instinct,but because am a not body (in lower class)in the society
If you dont pay zra on time they charge you interest now when zra are failing to pay vat refunds on time they should also pay interest because they are forcing companies to borrow elsewhere and pay interest instead of using the same vat refunds for their operations.
That is how rotten lungus leadership is…..with that $17 billion spent , Zambia should not be allowing anything that uses copper as a main component to be imported fully assembled…..things like motors and all cables should be made or assembled in Zambia using Zambian copper….