Business
Pre Close Trading Update and Board Change
Pre Close Trading Update and Board Change.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n \nRNS Number : 0704B Zambeef Products PLC 28 March 2013 \n \n\n\n\n\n\nFor Immediate Release \n\n\n28 March 2013\n\n\n\n\n \n \nZambeef Products plc\n(\"Zambeef\" or the \"Group\")\n \nPre Close Trading Update and Board Change\n \nZambeef (AIM: ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to provide an update on trading ahead of its half yearly results to be announced during the week commencing 10 June 2013.\n \nOverview\n \nThe Company is pleased to confirm that it expects turnover and pre-tax profits for the six months period ended 31 March 2013 (excluding the sale of 49% of Zamchick Limited, details of which were announced on 4 February 2013) to be in line with management expectations. \n \nDriven by continued growth in the Zambian economy and the expansion in the Group's production facilities, carried out during the previous financial year, trading conditions over the first six months of the financial year have remained strong. Demand for most product lines continues to increase, with particularly strong performances from cropping and stock feed. \n \nWhilst supply issues on the protein segments have been addressed, the Group has experienced minor performance constraints in the chicken, pork and mill and bakery divisions. The chicken division suffered a temporary reduction in margins through a national over production in the last quarter of 2012. This has now reversed, and national production is expected to match demand going forward. In addition, a three-month ban on importation of raw materials in 2012 led to the pork division incurring additional storage costs and consequently a temporary erosion of margins. With this ban now lifted, the Group expects to report improved margins in the pork division in the second half of the current financial year. The 2013 national budget removed value added tax (\"VAT\") on wheat and wheat products with effect from January 2013. This led to reduced demand in the first three months of the current period as a result of expectations of reduced pricing from this date. Demand for flour is expected to be strong in the second half of the financial year and Zambeef welcomes the removal of VAT on wheat and w...