PHOENIX Consolidated Industries has been suspended from trading on the Zimbabwe Stock Exchange (ZSE) after the company voluntarily applied for judicial management.
Reggis Saruchera of Grant Thornton and Camelsa has been appointed judicial manager.
Securities Commission of Zimbabwe, head of corporate finance Kundai Msemburi said Phoenix had gone into liquidation and according to the ZSE listing rules and the SECZ Amendment Act, the company should be suspended from trading.
“The company went into liquidation, so, according to ZSE listing rules, ZSE informed us and we have given them permission, to suspend the trading of the company’sshares,” Msemburi said.
Msemburi said Phoenix which was currently under liquidation was technically insolvent.
Liquidation is when liabilities are more than the company’s assets.
Phoenix incurred a loss of $228 000 for the half year ended April 30, 2013 as compared to a loss of $477 000 for the equivalent prior year period.
In the period under review, revenue was $4,688 million, net finance charges were $330 000 and depreciation at $249 000.
In a statement accompanying the group’s 2013 interim results, Phoenix chairperson Michael Frudd said the net worth of the company was reduced by $228 000 due to the loss incurred and the company was marginally in a net current asset position.
“Phoenix has the capacity to benefit from the expected upturn in the economy. The company has been approached regarding the potential purchase of one of its operating units,” Frudd said.
Phoenix Consolidated is a broad-based group of manufacturing industries.
The company’s subsidiaries are Scandia Steel Wire, William Smith and Gourock, John W Searcy and Phoenix Brushware. Phoenix’s major customers include supermarkets, hardwares, urban and rural councils, industries aligned to mining, agriculture and construction. The company also exports to South Africa, Zambia and Malawi.