Zimplow prowls for new opportunities
BUSINESS REPORTER
Industrials concern, Zimplow Holdings Limited, has projected a positive outlook and will prowl for new opportunities to expand its reach after four of its five units recorded growth in revenue in the first half of the year.
The company pulled through in the first half of the year to ward off the effects of the Covid-19 pandemic after posting a 12% revenue growth to ZWL$479m from the ZWL$ 428m realised in the same period last year.
Profit after tax was 5% up to ZWL$140m in the period under review to ZWL$134m. “Our outlook is cautiously positive supported by good leads in the construction and mining industry.
In addition we are encouraged by the Government’s focus on the performance of the agriculture and mining sectors.
In light of this the group will continue to lookout for opportunities to expand its business reach,” the company said.
The search for new opportunities comes after the announced plans to acquire Scanlink (Private) Limited, the sole distributor of Scania products in Zimbabwe, Tredcor Zimbabwe trading as Trentyre which is the exclusive distributor of the Goodyear brand of tyres in Zimbabwe and Stand 30001 Dagenham Road, Willowvale Township.
The acquisitions have to be approved at an EGM on October 15. Barzem’s revenues went up 145% to ZWL$221m from ZWL$90m.
The unit sold 13 CAT whole goods in the first half compared to 2 in the same period of the prior year.
After sales business parts and service hours were also ahead of the previous year by 3% and 19% respectively despite losing hours to the Covid-19 induced lockdowns.
CT Bolts also continued its recovery with a 73% growth in revenue to ZWL$22m.
The unit achieved 21% volume growth compared to same period last year.
The operating profit for the unit was also up 25% to ZWL$10.6m.
“The unit will continue to focus on product spread while realigning its distribution channels,” Zimplow said.
Powermec revenues were flat at ZWL$52.2m with generator sales at the same level as last year.
The group said operating profit for Farmec grew to ZWL$72m from ZWL$62m in the prior year.
It said the growth was supported by the implements sales volumes which were 35% ahead of prior year.
Tractor volumes were 28% behind prior year at 33 units sold. After sales parts and hours sold dipped 13% and 29% respectively, the company said.
It said Mealie Brand’s performance for the first half was sharply down compared to the same period last year due to the lingering effects of last years’ drought and limited access to regional markets.
