Room for improvement in RCC’s finances

FOR the first time since its inception five years ago, the Roads Contractor Company Limited (RCC) managed to reach the total income mark of N$400 million, realising a turnover of N$400,8 million in its financial year ended March 2005.

However, the Minister of Works, Transport and Communication, Joel Kaapanda, said the financial position of the RCC needed improvement. He said his ministry would ensure that RCC personnel were trained to serve as a catalyst for success, adding that prospects were good for the RCC to become the country’s top construction company, as long as proper planning was put into place.The Minister emphasised that the RCC needed to invest in human capital development and technological expertise.Gross profit for the company went up to N$76,8 million from N$47,8 last year, while net profit before tax of N$9,9 million represented an improvement of nearly 100 per cent on the budgeted net profit before tax.”Efforts must be made through proper planning to increase the company’s cash flow to cater for operational expenditure.The RCC’s Board of Directors, in my opinion, should take the lead in identifying key economic performance measures that would enhance and sustain the RCC’s liquidity, profitability and growth prospects that will ultimately lead to general economic growth in the country,” said Kaapanda in his shareholders’ briefing remarks.The RCC Board of Directors said it would steer the company towards a bigger and better future and hopes to generate increasing revenue so as to achieve its target of a N$1 billion turnover by 2010.Meanwhile, The Namibian can reveal that the RCC has bought Barloworld Concrete Industries (BCI).The deal was signed on September 12, transferring total ownership of BCI to the RCC.”RCC now owns 100 per cent of BCI,” said acting Chief Executive Officer Jacob Nghifindaka.He said BCI was bought as a going concern, as its operations were in line with those of the RCC.Nghifindaka said BCI would continue with its line of business and no employees would be affected by the change of ownership besides the CEO.He said a new CEO would be appointed within the next three months.He would not disclose the cost of acquiring the firm, however, saying it was a condition within the shareholders’ agreement not to disclose the amount.Efforts to interview former BCI CEO Keith Gardiner proved fruitless, as he said he would not talk to the press about the issue.He said his ministry would ensure that RCC personnel were trained to serve as a catalyst for success, adding that prospects were good for the RCC to become the country’s top construction company, as long as proper planning was put into place.The Minister emphasised that the RCC needed to invest in human capital development and technological expertise.Gross profit for the company went up to N$76,8 million from N$47,8 last year, while net profit before tax of N$9,9 million represented an improvement of nearly 100 per cent on the budgeted net profit before tax.”Efforts must be made through proper planning to increase the company’s cash flow to cater for operational expenditure.The RCC’s Board of Directors, in my opinion, should take the lead in identifying key economic performance measures that would enhance and sustain the RCC’s liquidity, profitability and growth prospects that will ultimately lead to general economic growth in the country,” said Kaapanda in his shareholders’ briefing remarks.The RCC Board of Directors said it would steer the company towards a bigger and better future and hopes to generate increasing revenue so as to achieve its target of a N$1 billion turnover by 2010. Meanwhile, The Namibian can reveal that the RCC has bought Barloworld Concrete Industries (BCI).The deal was signed on September 12, transferring total ownership of BCI to the RCC.”RCC now owns 100 per cent of BCI,” said acting Chief Executive Officer Jacob Nghifindaka.He said BCI was bought as a going concern, as its operations were in line with those of the RCC.Nghifindaka said BCI would continue with its line of business and no employees would be affected by the change of ownership besides the CEO.He said a new CEO would be appointed within the next three months.He would not disclose the cost of acquiring the firm, however, saying it was a condition within the shareholders’ agreement not to disclose the amount.Efforts to interview former BCI CEO Keith Gardiner proved fruitless, as he said he would not talk to the press about the issue.