General Beltings Holdings says a 38 percent reduction in prices resulted in the company remaining in a loss position in the first six months of the year, but it anticipates a second half recovery supported by new partnerships.
Managing director Wilbroad Tsuroh told shareholders at the company’s annual general meeting yesterday that the company had partnered South African rubber manufacturer Nuvo, which has so far provided a facility for working capital, equipment and order book.
“This is a 60 day account worth R5 million which allows us to procure adequate raw materials and we have not defaulted on it since beginning of the year,” he said.
According to Tsuroh, the deal was consummated by end of last year and it became operational beginning 2017.
During the period, group revenue increased 20 percent despite overall volumes remaining static at 365 tonnes.
General Belting’s volumes for the period increased 153 percent while revenue went up 57 percent. At
Cernol, volumes were down 27 percent while revenue dropped 11 percent.
Commenting on foreign currency suppliers, Tsuroh said the group was granted priority status by the central bank.-The Source