eBusiness Weekly
Nelson Gahadza
CFI Holdings says the appointment of a substantive chief executive and finance director is work in progress as part of efforts to fully regularise its shortcomings as required under the Zimbabwe Stock Exchange (ZSE) listing requirements.
The agro-industrial concern was suspended from trading on January 2, 2018 for failure to comply with the free float requirements and some corporate governance related matters under the ZSE listing requirements.
However, the ZSE lifted the suspension in the trading of CFI Holdings securities on 6 October 2021 after the local bourse was satisfied that the firm had regularised its corporate governance shortcomings as required under the listing requirements and subsequently resumed trading on 11 October 2021.
Whilst the issue of the free float remained unresolved, the ZSE gave CFI a moratorium of five (5) years to address the free float requirements and the local bourse will be reviewing progress on regularisation of this requirement on an annual basis.
In addition to free float requirements, CFI was requested to address issues relating to the appointment of substantive board chair, chief executive and finance director; and the appointment of independent non-executive directors who are not affiliated or have any association with any of the company’s shareholders.
Messina Investments, currently the largest shareholder in CFI, is an international investment holding company owned by business tycoon, Nic Van Hoog and incorporated in the British Virgin Islands.
CFI acting chairperson, Itai Pasi, told shareholders at the company’s annual general meeting that the board was making progress on the matter.
“The appointment of substantive chief executive officer and finance director is a matter under consideration by the board and the market will be updated in due course,” she said.
The other shareholders in CFI include Stalap Investments and ZHL. Both Stalap and ZHL voted against all the resolutions that were tabled for the meeting.
These include receiving and adoption of the Group’s Financial Statements for the year ended 30 September 2021, together with the reports of the directors and auditors.
They also voted against the appointment of directors, directors remuneration, auditors remuneration and appointment of auditors.
According to Pasi, the group has realigned its business in order to ensure business sustainability going forward.
In a trading update for the five months ended 28 February 2022, Shingirayi Chibhanguza, the group’s acting chief executive said group turnover increased 153 percent to $7,8 billion driven by an improvement in aggregate demand following a good 2020/2021 rainy season.
“In addition, the Group benefitted from growing demand for Agrifoods’ stockfeed after it exited judicial management.
The historical growth compares to average official year on year inflation of 60.1 percent for the period,” he said.
He noted that of the total turnover, Retail accounts for 87 percent, Glenara – 2 percent and Victoria Foods 11 percent.
“Volumes on the top five key revenue drivers increased by an average of 83 percent during the period and this was realised on the back of a good agricultural season and the impact of increased stockfeed sales contribution by Agrifoods,” he said.
Chibhanguza said during the period, the Group accessed additional borrowings equivalent to US$7,3 million in order to support Agrifoods and Victoria Foods’ working capital requirements.
“However, the Group’s cost of borrowing declined during the period as it accessed its loans mainly in USD,” said Chibhanguza.
In terms of operations, he said retail volumes were boosted by the prior year’s good agricultural season, and though modest, a resurgence in construction activities and relative stability in the economic environment.
He said on farming operations, Glenara established 495 hectares of commercial maize and 178 hectares of soya beans, in addition to continuing with table potato production.
“Glenara has remained profitable on the back of the farm recapitalisation undertaken in prior years and reasonable yields being attained in its farming operations,” Chibhanguza said.
He noted that on the properties side, the group continues with layout plans, regularisation and furtherance of development preliminaries to allow commencement of the development phase of the projects at Saturday Retreat and Lot A of the Rest.
“However, the Group continues to deal with the scourge of land barons interrupting the group’s plans for progressive and orderly infrastructure deployment, but it welcomes the authorities’ support in dealing with the land matters for the good of our communities,” he said.
Chibhanguza indicated that in the interest of the safety of staff and customers, the group continues to adhere to the Covid-19 health and safety measures in accordance with Ministry of Health and Childcare and WHO standards.
He highlighted that the group has improved its digital foot print in order to afford customers enhanced digital experiences and improved efficiencies in transacting with the group.
As a result, he said management remains focused on consolidating the group’s resurgence in order to nurture the businesses to contribute fully to food sustainability in the country whilst delivering acceptable returns to shareholders
