Zimplow shareholders approve Dagenham property disposal

PHILLIMON MHLANGA

Shareholders of publicly traded diversified agro-industrial group Zimplow Holdings Limited on Thursday approved the disposal of the group’s Dagenham property, endorsing a US$3.2m transaction that management says will sharpen capital efficiency, strengthen liquidity and reposition the balance sheet, Business Times can report.

The resolution was passed at an extraordinary general meeting, clearing the way for the sale of the non-core asset and the redeployment of proceeds into working capital, inventory optimisation and higher-return business lines.

“…we have taken a deliberate step to dispose of the Dagenham Property after careful consideration by both Management and the Board. The property is a non-core asset, and the offer of US$3.2m presented a compelling opportunity for the Group,” Zimplow group chief executive officer Willem Swan said.

He said the disposal was driven by a clear set of strategic considerations, beginning with capital efficiency.

By unlocking value tied up in a non-productive asset, Swan said the group would be better positioned to fund day-to-day operations and improve inventory cycles while redirecting capital into productive uses.

“This disposal enhances our capital efficiency. By unlocking US$3.2m from a non-productive property, the group is able to strengthen our liquidity, support working capital, improve inventory cycles, and more importantly redirect capital to areas that generate real returns for the business,” he said.

Swan said the transaction also formed part of a broader asset optimisation programme aimed at rebalancing the portfolio towards operationally critical assets and long-term competitiveness.

“We are rebalancing our portfolio to focus on assets that are directly linked to operations and long-term competitiveness. Holding onto non-core real estate like Dagenham does not align with that strategy,” he said.

Beyond operational alignment, Swan said the disposal would provide greater balance-sheet flexibility, allowing Zimplow to respond more effectively to growth opportunities, manage market volatility and potentially reduce debt or settle payables.

“It’s a favourable and time-sensitive opportunity for us to realise value and reinvest it into areas that move the Group forward. And finally, this disposal is fundamentally about shareholder value creation. By consolidating and reinvesting the capital from Dagenham, we position Zimplow to fund future developments, enhance productivity, and focus on initiatives that deliver long-term value,” he said.

“Our strategy going into 2026 is very clear, we are tightening our asset base, strengthening our balance sheet, and reinvesting only in productive, strategically aligned areas of the business. This transaction supports that direction fully,” Swan added.

“We are unlocking value from a non-core asset and redirecting it into areas that strengthen Zimplow’s competitiveness and long-term growth,” he said.

Swan said the decision followed a prolonged internal review of the group’s footprint and operational needs.

“We have been looking at it for probably the best part of three years. We have business units that are invested in agriculture, logistics, construction, and mining,” he said.

“And for us being able to centralise those businesses … will increase the throughput for the business itself.”

He said accessibility challenges at the historic Dagenham Road site had also accelerated the shift, reinforcing the case for consolidation into more suitable industrial locations.

Looking ahead, Swan said Zimplow’s immediate priorities would centre on liquidity management, ensuring stock availability and strengthening risk-management measures in response to prevailing macroeconomic pressures.

He said the group’s capital expenditure for the period would be restrained, ranging between US$800,000 and US$900,000, as investment is carefully sequenced. Zimplow is understood to be constructing state-of-the-art workshops for Scania and Trentyre Tyre, alongside new facilities in Msasa, Harare, including a dedicated building to house the group’s original equipment manufacturers.