Profit after tax rose to US$431 000 from US$378 000 in the comparable period after an income tax credit of US$835 000 offset a pre-tax loss of US$275 000.
AMALGAMATED Regional Trading (ART) Holdings Limited remained profitable in the six months ended March 31, 2026, despite recording a pre-tax loss as property disposal costs, retrenchment expenses and a difficult operating environment weighed on earnings, signalling that the group’s restructuring efforts are beginning to bear fruit.
Profit after tax rose to US$431 000 from US$378 000 in the comparable period after an income tax credit of US$835 000 offset a pre-tax loss of US$275 000.
In the prior-year period, the group recorded a pre-tax profit of US$67 000.
The results reflect the impact of ART’s ongoing restructuring, which included the disposal of legacy assets and cost-cutting measures aimed at improving liquidity and positioning the group for long-term growth despite persistent macroeconomic headwinds.
The group booked a US$468 000 loss on the disposal of its discontinued Mutare Mill properties and incurred US$73 000 in retrenchment costs.
Operations also faced liquidity constraints, high utility costs, elevated interest rates and stiff competition from imports.
“Gross profit margin improved to 35%. Underlying profitability strengthened before disposal and transition-related expenditure as fixed overhead reduction initiatives gained traction,” acting chairperson Mike Oakley said in a statement accompanying the half-year results.
He said investments to strengthen the group’s route-to-market capabilities also increased expenditure during the period.
“The group recorded a loss before tax of US$275 000 following a disposal loss of US$468 000,” Oakley said.
“The disposal of the discontinued Mutare Mill properties was part of broader initiatives to reduce legacy obligations and, while dilutive to reported earnings in the short term, management is satisfied that the disposal strengthens liquidity and improves the group’s financial position when ongoing holding and maintenance costs are taken into account.”
Revenue increased 6% to US$14,3 million from US$13,5 million in the comparable period, supported by a 5% increase in overall sales volumes.
Mutare Estates, the group’s forestry and timber business, remained its strongest performer, with volumes rising 31% as demand for structural timber remained firm.
“Demand for structural timber and related products remained firm throughout the period, supported by higher milling productivity, operational efficiencies and disciplined pricing management,” Oakley said.
The Batteries Zimbabwe division returned to profitability during the second quarter as local sales volumes increased 3% and export volumes recovered 10%.
“Production and sales volumes, however, remained below target due to working capital-related supply constraints and production disruptions experienced during the period,” Oakley said.
“The business remains well placed to benefit from growing regional demand for energy storage solutions.”
Stationery division Eversharp recorded a 13% increase in volumes, supported by improved pricing discipline and continued demand for its trading products, including the EV10 pen range.
Oakley said borrowings declined following the repayment of short-term facilities but noted that access to appropriately structured long-term capital remained critical for future growth.
Looking ahead, he said market conditions were expected to remain challenging in the second half of the financial year.
“Liquidity constraints, cost pressures, import competition and regional market volatility are likely to persist,” Oakley said.
“Nevertheless, the group enters the second half with improving business momentum, stronger cost discipline and a clearer strategic focus.
“Management’s priorities remain centred on increasing cash generation, improving working capital efficiency and strengthening competitiveness across the group.”-newsda
