PCL profit picks up in 2016
Dual-listed conglomerate Press Corporation Limited (PCL) Limited has reported an after-tax profit of K17.1 billion in the year ended December 31 2016, up from K12.2 billion profit realised in the previous year despite operating in a challenging environment.
The Malawi Stock Exchange (MSE) and London Stock Exchange‑ listed conglomerate in a published statement accompanying audited financial statements for the year, says the performance was anchored by an increase in revenues aided by significant improvement in gross margins and reduction in finance charges.
“Overall, the group results were satisfactory notwithstanding the unfavourable macroeconomic and operating environment,” says PCL in its statement jointly signed by PCL board chairperson Patrick Khembo, director Damien Kafoteka, group chief executive officer George Partridge and group chief financial officer Elizabeth Mafeni.
The group says the telecommunications segment, which comprises the Malawi Telecommunications Limited (MTL), Telekom Networks Malawi Limited (TNM) and the newly formed Telecommunications Fibre Optic Backbone Infrastructure Company (OCL), delivered outstanding results.
According to PCL, this is due to its aggressive investment in new technologies and capacity expansion projects which resulted in a 13 percent growth in its subscriber base mainly up market.
Similarly, the financial services segment (National Bank of Malawi), energy segment (PressCane and Ethco) and real estate segment (Press Properties), delivered good results while the consumer goods segment (retail chain store People’s Trading Centre (PTC) and fish farming segment (Maldeco) incurred losses.
In the consumer goods and segment, the losses were due to reduced working capital following stock losses discovered in 2015 segments while in fish farming business the losses were due to erosion in working capital and increase in borrowing costs.
On outlook for 2017 the group says it is well positioned for growth and will leverage its strength of being reasonably well diversified to push for more growth in a fragile trading environment.
Speaking recently to Business News, Partridge said the conglomerate will take advantage of economic rebound for expansion.
He said: “We are talking to a lot of partners and some of these are under the terms of confidential basis. For the fishing business, we are still looking at a technical partner to help us with advanced models after which they will leave us.”
