Business / Companies
Zimplow to achieve operating profit or break-even by half year
08 Apr 2013 at 06:45hrs | Views
Zimplow Holdings will probably achieve an operating profit or at least break-even for the half year, CEO Zondi Kumwenda told the AGM last Thursday.
"There will be discontinued operations within the first half as we align certain divisions within the group," he said.
Kumwenda highlighted that trading patterns as reported in the press announcements published on 8 March and in the 2012 annual report have not changed significantly during the first quarter of the current financial period.
"The economy remains hamstrung by tight liquidity constraints, high interest rates, and subdued performance by key sectors of the economy," he noted.
He added that the impending elections in 2013 have seen some customers deferring capital expenditure to post-election period, thereby negatively impacting on the group's tractor and earth moving equipment.
Kumwenda indicated that "low liquidity levels also have resulted in a number of customers delaying settlement of their accounts thereby inhibiting sales and restocking programmes."
"Group revenues for the quarter were at the same levels prior year. Earthmoving machines, lift-trucks and generators at Barzem were 35% above last year.
"The business unit continues to exceed targets. Tractor and generator volumes from the mechanical agricultural divisions were 46% down on last year although March reflects a significant improvement," added Kumwenda.
He further noted that motor vehicle sales at Puzey & Payne were 40% down on prior year, with sales of Toyota units subdued compared to last year, due to liquidity constraints and limited asset-based financing facilities.
"Afritrac contribution was miniscule for the quarter. CT Bolts volumes measured in units are however 47% down from last year especially within the woodscrew range," Kumwenda said.
CT Bolts volumes measured in kilogrammes, are almost at the same levels as last year as mentioned by Kumwenda.
Mealie Brand local volumes were up by 48% and orders continued to be received for April while export volumes however are down by 86% due to delayed shipments into the regions. "Margins have been maintained from last year," he said.
Shareholders approved director's fees of $54 044 and audit fees for Ernst & Young of $102 000.
"There will be discontinued operations within the first half as we align certain divisions within the group," he said.
Kumwenda highlighted that trading patterns as reported in the press announcements published on 8 March and in the 2012 annual report have not changed significantly during the first quarter of the current financial period.
"The economy remains hamstrung by tight liquidity constraints, high interest rates, and subdued performance by key sectors of the economy," he noted.
He added that the impending elections in 2013 have seen some customers deferring capital expenditure to post-election period, thereby negatively impacting on the group's tractor and earth moving equipment.
Kumwenda indicated that "low liquidity levels also have resulted in a number of customers delaying settlement of their accounts thereby inhibiting sales and restocking programmes."
"Group revenues for the quarter were at the same levels prior year. Earthmoving machines, lift-trucks and generators at Barzem were 35% above last year.
"The business unit continues to exceed targets. Tractor and generator volumes from the mechanical agricultural divisions were 46% down on last year although March reflects a significant improvement," added Kumwenda.
He further noted that motor vehicle sales at Puzey & Payne were 40% down on prior year, with sales of Toyota units subdued compared to last year, due to liquidity constraints and limited asset-based financing facilities.
"Afritrac contribution was miniscule for the quarter. CT Bolts volumes measured in units are however 47% down from last year especially within the woodscrew range," Kumwenda said.
CT Bolts volumes measured in kilogrammes, are almost at the same levels as last year as mentioned by Kumwenda.
Mealie Brand local volumes were up by 48% and orders continued to be received for April while export volumes however are down by 86% due to delayed shipments into the regions. "Margins have been maintained from last year," he said.
Shareholders approved director's fees of $54 044 and audit fees for Ernst & Young of $102 000.
Source - zfn
