More retrenchments are looming at PG Industries as the group seeks to turn around its fortune after sinking deeper into the red, posting a $11,3 million loss for the year ended December 2013.
The group’s acting chairman Mr Francis Dzanya said the group is expecting to have completed the retrenchments by the end of this month.
“Additional staff rationalisation will be done before 2014 half year-end,” Mr Dzvanya said without elaborating on the numbers involved and how much this will cost the group.
The development comes as the group had already reduced its workforce to 497 by December last year from 652 the year before, which cost the group $857 000 in retrenchment costs of.
The group attributed its loss to lack of capital, stiff competition and retrenchment overheads that had a negative impact on its performance.
“Lack of sufficient working capital and generally difficult economic conditions particularly in the second half of the year, negatively affected the group’s performance,” Mr Dzvanya said.
PG is suspended from trading on the Zimbabwe Stock Exchange and is implementing restructuring measures aimed at paying off the over $15 million debt.
It is pursuing a number of initiatives that include a property-debt swap to settle dues amounting to $4,5 million.
It is also seeking to raise $1 million through a private placement and has mobilised $1,1 million for working capital from local banks.
PG operations include PG Building Supplies, PG Timbers, Zimtile and PG Glass Zimbabwe which have a combined 33 outlets throughout Zimbabwe.
Of all the local operations, Zimtile was the only one that recorded growth after its sales grew by 9,7 percent to $9,7 million, due to a 17,1 percent growth in concrete tile sales volumes.
Zimtile’s margins improved to 25,7 percent from 23,6 percent due to improved efficiencies and higher tile production volumes.
Apart from Zimbabwean operations, PG also runs PG Mozambique, which has six outlets.