Omnia turnaround strategy bears fruits

DIVERSIFIED chemicals group Omnia, which operates in three segments — agriculture, mining and chemical — says its agricultural division is facing some headwinds as a result of a drought.
The group’s turnaround plan has stabilised the group in the six months to end September as it cut its debt by R1.4 billion.
However, chief executive Seelan Gobalsamy admitted on Tuesday that the group still had a long way to go, despite successfully delivering on its short-term stabilisation plan.
“We wanted to retain the group’s back to basics by cutting costs and return it to profitability. We have also managed to cut the debt by R1.4bn and management remained focused on stabilising the group by initiating a turnaround strategy and improving our capital structure, following a successful rights offer fully underwritten by our shareholders.
“Good progress was also made in terms of reducing costs as well as lowering capital expenditure and working capital requirements,” Gobalsamy said.
— IOL