PCL rolls out functional review, heads set to roll
Conglomerate Press Corporation Limited (PCL) plc has announced implementation of a functional review exercise set to bring radical changes, including removal of some positions at its corporate office.
In a statement yesterday, the Malawi Stock Exchange-listed firm’s board chairperson Randson Mwadiwa said as part of the restructuring initiative, the PCL board of directors also reviewed the holding company’s organisational structure to examine costs.
He said: “Based on analysis of the findings and recommendations of the consultants, the board is in the process of implementing some pragmatic interventions aimed at steering the ship to bring forth significant improvements in line with the core strategic objectives of the company to enhance shareholder value.
“Ultimately, our desire is to ensure that fruitful implementation of the board’s approved recommendations, contribute meaningfully to a successful re-positioning of PCL as a leading corporate business entity in the Malawi environment.”
During the past three years, profitability of PCL has dwindled as profit after tax declined from K36.71 billion in 2018 to K24.76 billion in 2019 and further down to K19.9 billion in 2020.
The decline in profits has been attributed to exchange rate losses and restructuring costs.
In 2019, PCL recorded an K8.86 billion profit on restructuring the telecoms segment in the prior year and one-off expenses relating to restructuring costs in subsidiary companies National Bank of Malawi plc (K892 million), TNM plc (K1.02 billion) and Ethanol Company (K450 million), the decline in underlying profit is three percent.
Prior to listing in September 1998, the sole investment of Press Trust was PCL in which the Trust held 93 percent of the issued share capital while Old Mutual had the remaining seven percent.
Currently, PCL shareholding comprises Press Trust with 46.65 percent, Old Mutual Assurance Company with 16.29 percent, Standard Bank of South Africa holds 2.94 percent and others, including the publis, a collective 34.12 percent.
