ZECO Q1 top line jumps 14%

BUSINESS REPORTER

ZECO Holdings has seen its revenue in the first quarter to March 31,2023 jump 14% from the prior comparative period, on the back of the good performance from the property sector.

In a trading update, ZECO company secretary John Mwinjilo said the firm recorded a strong performance due to increased sales volume.

“During the period under review, revenue saw an improvement of 14% to the prior year comparable period mainly driven by inflation.

“At a group level we continue to realise revenue from our real estate businesses as we let out more space,” Mwinjilo said.

This has continued to improve working capital.

Mwinjilo said the performance of the group would depend on the economic environment, which affects the cost of production and operating costs.

He said the volatile exchange rate has affected the company’s operations as this eroded the company’s capital.

Mwinjilo said ZECO was pessimistic about the future as the country moves closer to elections where the operating environment becomes more uncertain.

The company, he said, also expects tight liquidity control by authorities thus restricting business activities and pressure on the exchange rate as witnessed in the last few weeks, as the difference between the interbank and parallel rates increase.

Mwinjilo said business innovation under the new strategic thrust would continue to ensure the company thrives and improves.

ZECO will continue with a multifaceted response to the increasingly competitive environment by pursuing new market segments and widening its portfolio.