Cambria Africa reports significantly improved operating results

Cambria Africa announced a further improvement in its operating results for the year to 31 August on Tuesday, with its Payserv division achieving $5.4m in revenues, an increase of 7.8% year-on-year.

Payserv's consolidated EBITDA for the year increased by 44.7% to $1.78m, while profit before tax increased by 85.7% to $1.43m.

Excluding minority interests, EBITDA increased by 70.7% to $1.4m, while profit before tax increased by 197% to $1.1m - or 0.5 cents per share.

Millchem reported positive cash flow from operations following a significant improvement in inventory and trade receivables management.

The board said Millchem's EBITDA loss improved by 74% to a loss of $250,000, while its loss before tax improved by 72.5% to a loss of $280,000 - or 0.1 cents per share.

Its reduction in losses was also attributable to the discontinuation of unprofitable operations in Malawi and Zambia.

As a result of these closures, revenue decreased by 39.7% to $3.19m.

Cambria's central costs, excluding non-recurring legal costs, decreased by 85.5% to $290,000, which the board said underscored the turnaround implemented under the company's new management.

“As a result of the repayment of the Nurture and Consilium loans, the company will achieve an estimated annual interest cost saving of $435,000 in the ensuing financial year from lower debt levels,” the board said in its statement.

“The overall improvement in results is further demonstrated by the settlement of approximately $1m in debt using cash flow from operations.

“This, together with the continued financial support from Ventures Africa Limited, allowed the group to settle the Consilium and Nurture loans resulting in a significantly improved financial position.”