THE Ba Provincial Holding Company Limited has reduced its workforce from 82 to 15 employees as part of a major restructuring exercise to address years of financial losses.
Company chief executive officer Sitiveni Weleilakeba revealed this during the Ba Provincial Council meeting in Nadi last week saying the restructuring had resulted in annual savings of about $650,000 through reduced staffing costs.
“When we reviewed the organisational structure, we had to cut it back because there were too many people,” Mr Weleilakeba said.
“We had to reduce the number of staff from 82 to 15.”
Mr Weleilakeba said the company had also renegotiated its bank loan, reducing its interest rate and monthly repayments.
“And we renegotiated our loan with the bank which reduced the interest within a span of 10 months from eight per cent to six per cent; now we are only paying four per cent which means that our debt servicing ability has improved.”
He said the monthly repayment had dropped from $113,000 to $76,000, improving the company’s ability to service its debt and meet other financial obligations.
“So, in other words we are saving another $40,000 from there that could go towards debt servicing or the liabilities that the business has.”
The company recorded a loss of $94,000 in 2024, according to audited accounts presented at its annual general meeting in August this year.
Mr Weleilakeba said the company was also expecting to record a loss in 2025, although its audited accounts were not yet available.
However, he was optimistic about the company’s financial outlook, forecasting a cash flow of $3 million by the end of 2026.
“When I took over, there was absolutely zero cash. Now, I am happy to say I checked the bank balance, and we have more than $1m in the bank.”
He said the balance included a provision for a $321,000 dividend declared by the directors at the end of September, equivalent to 10 cents per share.
“And there’s another provision for another five cents to be declared interim again before the end of the year.”
