Namfish incurs more losses

THE Namibia Fishing Industries Limited (Namfish) suffered poor results for the financial year ended April 30 2004, with the operating loss increasing to N$31 million compared to N$14 million of 2003.

The group recorded a headline loss of 49,8 cents per share compared to a headline loss of 18,2 cents per share in the previous period. The group also registered an unaudited net loss for the year at N$54,2 million compared to audited of 2003 at N$31,5 million.As a result cash flow was adversely affected by these poor results, which together with necessary capital expenditure, increased borrowings and gearing significantly.According to Namfish’s abridged financial statements for the year ended April 30 2004, performance was affected “by detrimental changes in the size of mix of hake, declining lobster and monk catches and the strengthening of the Namibian dollar against major currencies”.Namfish is totally export reliant.The predominantly small hake size mix increased processing costs and resulted in lower values realised from the sale of small hake products.This move, according to the financial statement, was worsened by an oversupply of small hake products on world markets, which further depressed prices.The difficult conditions facing the industry have also impacted negatively on the performances of the associated companies.The group is concerned with its liquidity which has come under severe pressure due to sustained losses over the last two reporting periods.In the year under review, Namfish’s two main shareholders Die Frans Indongo Trust and Sea Harvest Corporation Limited advanced N$5 million and N$15 million respectively in the form of term loans and bridging finance.Sea Harvest Corporation also provided trade finance of N$9,1 million over certain debtors at year-end.In order to improve cash flows, the Namfish board resolved to dispose of specified assets with a focus on those considered non-core.The group also registered an unaudited net loss for the year at N$54,2 million compared to audited of 2003 at N$31,5 million.As a result cash flow was adversely affected by these poor results, which together with necessary capital expenditure, increased borrowings and gearing significantly.According to Namfish’s abridged financial statements for the year ended April 30 2004, performance was affected “by detrimental changes in the size of mix of hake, declining lobster and monk catches and the strengthening of the Namibian dollar against major currencies”.Namfish is totally export reliant.The predominantly small hake size mix increased processing costs and resulted in lower values realised from the sale of small hake products.This move, according to the financial statement, was worsened by an oversupply of small hake products on world markets, which further depressed prices.The difficult conditions facing the industry have also impacted negatively on the performances of the associated companies.The group is concerned with its liquidity which has come under severe pressure due to sustained losses over the last two reporting periods.In the year under review, Namfish’s two main shareholders Die Frans Indongo Trust and Sea Harvest Corporation Limited advanced N$5 million and N$15 million respectively in the form of term loans and bridging finance.Sea Harvest Corporation also provided trade finance of N$9,1 million over certain debtors at year-end.In order to improve cash flows, the Namfish board resolved to dispose of specified assets with a focus on those considered non-core.