ONGWEDIVA - The Namibian Fish Consumption Promotion Trust (NFCPT) improved its revenue from N$87 171 789 during the 2017/18 financial year to N$95 175 945 in the 2018/19 financial year, marking an impressive nine percent improvement.
This revelation was made by the Minister of Fisheries and Marine Resources Bernhard Esau on Friday at the NFCPT Annual General Meeting press conference at Ongwediva.
However, despite the revenue growth, the trust’s overall financial position deteriorated somewhat, with a marked decreased of 7.5 percent. According to Esau, the trust’s total assets at the end of the 2018/19 financial year stood at N$132 040 321 compared to N$142 748 319 during the 2017/18 financial year.
“Out of these total assets, N$68 354 345 was for fixed assets and N$63 685 976 was for liquid assets, including cash,” said the minister.
Due to cash flow deficit, the trust liquidity position also shrunk from an expected current ratio of 4:1 to 3:1 of the financial period under review.
This means that even though the trust was still able to cover its debts, deliberate measures must be taken to overcome the deficit in the next financial period, the minister stressed.
The trust moving forward aims to finance capital projects and fixed assets with long-term financing arrangements in order to promote and develop expansion plans.
According to management, this decision is necessary because the trust’s gearing position is only 19 percent due to the fact that it operates on a cash basis.
In the same vein, the trust also experienced a cash flow deficit of N$5.5 million due to financing capital projects and fixed assets.
“The deficit is primarily driven by the fact that the trust operates on a cash basis. This situation produces a mismatch of costs versus benefits, especially regarding capital projects and fixed assets,” said Esau.
Moving forward, he noted that the trust will in future assess available financing options in order to rectify the negative cash flow position.
In total, the trust has invested more than N$7 million in fixed assets for the construction of the Omuthiya Fish Shop. The minister encouraged the board to seek innovative means for the trust to position itself as a viable and self-sustaining institution that will continue to deliver tangible results. The NFCPT was established through a Cabinet resolution to promote fish consumption in the country by making it accessible and affordable.