Shelter and pipe products manufacturer, Turnall Holdings’ turnaround process which began in September 2014 has begun to pay dividends as it returned to profitability in the year to December 31, 2015. The group posted a profit of $106 938 which was a recovery from a loss position of $11, 9 million in the prior year. The performance was largely due to the group’s decision to diversify its suppliers which resulted in significant cost saving on key inputs especially chrysotile fiber.
Other strict cost control measures include aspects like cost of sales lower at $22, 4 million from $32, 3 million; administration expenses at $3, 8 million, 71% below prior year; financing cost decreased by 6%.
The group is also expecting to reap further rewards from a combination of rightsizing the business, further cost reduction and capturing market opportunities.