Phoenix Consolidated Industries - Period Ending Oct 2009


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Phoenix Consolidated Industries Limited presentation for the period ending 31 October 2009

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Phoenix Consolidated Industries - Period Ending Oct 2009

  1. 1. Phoenix Consolidated Industries Limited presentation for the period ending 31 October 2009 Corporate presentation
  2. 2. Disclaimer <ul><li>Information contained herein was obtained primarily from Phoenix Consolidated Industries Limited (“Phoenix”) publications. While every effort was made to ensure that the content is accurate, AfricanSmallCaps (“ASC”), its employees and any third parties do not warrant the accuracy, adequacy, completeness or timeliness of the data contained herein. The use of the data here-contained is at the sole risk of the user. Users of this data shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of Phoenix . </li></ul>
  3. 3. <ul><li>Phoenix Consolidated Industries Limited was formed after the unbundling of Apex Corporation of Zimbabwe Limited. The Company Comprises of five companies namely, Phoenix Brushware, Premier Products, Scandia Wire, John W Searcy and William Smith and Gourock. Our Companies are all ISO 9002 certified thus a guarantee to our customers for quality. </li></ul>Company overview
  4. 4. <ul><li>The Board is pleased to advise that the group was able to successfully manage the transition to hard currency trading and is well placed to be profitable going forward. </li></ul><ul><li>Balance sheet: Plant and equipment has been included in the Balance Sheet at Directors’ valuation. The company has total current assets of $2.9 million against current liabilities of $1.7 million. External suppliers have responded to an increased demand by offering favourable credit terms. Phoenix has sufficient local borrowing facilities to finance the forecast increase in working capital </li></ul>Chairman’s statement
  5. 5. Statement of income for the year ended 31 October 2009 Group financial performance US$ -155,000 Loss after tax attributable to shareholders of the Company 263,000 Operating profit before depreciation 4,371,000 Turnover
  6. 6. Consolidated Balance Sheet and Cashflow Group financial performance cont’d… US$ -70,000 Cash and cash equivalents at the year end 60,000 Net cash generated from operating activities 10,208,000 Total assets 6,242,000 Total equity
  7. 7. Share information 2,356 Number of ordinary shareholders 7.20 Net asset value per share (cents) -0.18 Loss per share (cents) 3.60 Year end share price (cents) 85,450,000 Number of ordinary shares
  8. 8. Operations Phoenix Brushware : Phoenix Brushware continued to establish themselves in all major supermarkets with a full range of domestic and commercial products.
  9. 9. Operations continued… Premier products : Premier has now been incorporated into Scandia in order to maximize efficiency.
  10. 10. Operations continued… Scandia Wire : Scandia have re-branded themselves as Scandia Steel and Wire due to their expanded range of products. The Harare warehouse is now fully functional and production of brickforce has commenced at this facility. In the new year diamond mesh will also be manufactured in Harare. The product range will continue to be expanded to provide full coverage of steel and fencing products. Scandia will also be able to expand into the Premier factory which will be rationalized to concentrate on plastic products.
  11. 11. Operations continued… J W Searcy J W Searcy traded profitably and volumes should increase in line with growth in the agricultural, mining and construction industries. There should also be opportunities in water treatment and sanitation rehabilitation projects.
  12. 12. Operations continued… William Smith and Gourock William Smith & Gourock had a good year and with the current rainy season demand for tarpaulins and rainwear is strong. Currently due to the strong rand, tarpaulin prices are cheaper than the equivalent South African product. Demand for colourants from Pigmento continues to grow with the revival of industry and the improved conditions at government schools. W S & G will target camping equipment in preparation for the perceived boom in tourism for the world cup.
  13. 13. Operations continued… Pacprint Pacprint has continued to perform well in a highly competitive industry. The aid financed project for textbooks for government schools is expected to be finalised early in the New Year. Expansion plans are on course to increase capacity and introduce new product lines.
  14. 14. Dividends In view of working capital requirements the Board has decided not to declare a final dividend.
  15. 15. Outlook Premier Products was the only unit to trade at a loss during the year. The merging of this unit with Scandia has rectified this problem. Demand at all units was strong in September and October and this is expected to continue after the Christmas break. On this basis, Phoenix forecasts to be profitable for the first half of its financial year. The envisaged growth in agriculture, mining and construction will have a significant positive effect on Phoenix.
  16. 16. Conclusion Questions ?
  17. 17. Thank You.