Amalgamated Regional Trading (ART) Holdings Limited has realised approximately US$1 million from the disposal of non-core assets over the past year, as the group intensifies efforts to settle historical debts and reposition operations.
The industrial group’s chief executive Milton Macheka said the asset sales, initiated at the beginning of the 2025 financial year and still on-going, “are part of a wider strategy to streamline the business, improve efficiencies and concentrate on core divisions”.
The disposals come on the back of constrained liquidity, with the group facing escalating pressure on cash flows and working capital.
“Most of the proceeds realised from the sales have been used to address outstanding liabilities rather than fund day-to-day operations,” Macheka told shareholders at the company’s annual general meeting recently.
He noted that while the initiative had yielded meaningful inflows, immediate financial commitments had taken priority over reinvestment into working capital.
ART specialises in the manufacturing and distribution of batteries, paper products, stationery, and timber.
The group – disposing machinery and underutilized property related to the Kadoma Maper Mills, and underutilized land and properties in Mutare and Harare – is currently rationalising its portfolio by exiting underperforming and non-strategic units in favour of segments with stronger prospects.
Management believes the restructuring programme will sharpen operational focus and support long-term growth, although short-term financial challenges remain evident.
For the period under review, the group recorded a seven percent increase in revenue, supported mainly by improved performance in its core operations.
Growth was noted in the batteries and estates divisions, while volumes in the stationery unit were largely unchanged.
Export volumes to Zambia declined by four percent, reflecting a deliberate scaling back of exposure in that market, while operations in Malawi continue to be affected by foreign currency shortages.
Despite the revenue growth, overall performance fell below expectations due to rising input costs and persistent liquidity constraints.
Macheka acknowledged that tight cash flows have disrupted capacity utilisation across several business units.
Going forward, the company is pinning hopes on stronger seasonal demand in the energy segment – particularly batteries – to ease liquidity pressures and stabilise operations.
He expressed optimism that improved trading conditions during the peak period would help strengthen the group’s financial position.
At the same meeting, shareholders approved all proposed resolutions, including the continuation of board chairperson Thomas Wushe.
Wushe, who has served on the board since 2015, reaffirmed the board’s commitment to enhancing shareholder engagement and maintaining a clear focus on the company’s long-term strategic direction. – TML