News / National
Chiyangwa's company suffers more loses
12 Oct 2018 at 13:45hrs | Views
Zeco Holdings recorded a negative bottom line of US$67 500 in the six months to June 30 2018 compared to US$754 000 loss in 2017 as revenues failed to cover costs.
This was regardless of the group's cost containment measures employed in the period under review.
During the period, Zeco generated revenues of US$126 000 compared to US$82 000 in prior year.
The group's asset base stood at US$39,195 million. Group chairperson Phillip Chiyangwa said the operating environment during the first six months under review started showing positive signs as the new government enacted investor friendly policies.
"However liquidity challenges persisted and foreign investor kept a wait-and-see attitude as the country went into election mode. Costs containment continued but revenue could not cover operating costs resulting in a negative bottom line of US$67 500 compared to compared to the US$754 000 loss in 2017. The group asset base stood at US$39,195 million," Chiyangwa said.
Rental income increased to US$72 468 from US$70 125 in 2017.
Chiyangwa said the group's flagship subsidiary, Delward Engineering, was not spared in its core business activities due to the challenging economic environment with no major projects undertaken during the period under review although positive leads persisted.
Delwards relies on infrastructure projects.
On the other hand, he said Crital Hopes' performance continued to be encouraging with improved results from prior year with new construction starting to take off in the country, emanating from the positive environment. He said the remodelling of its other subsidiary, Zimplastics is expected to provide a positive outlook due to the new dispensation.
"The new impetus brought in by the new dispensation and positive policies being enunciated by government should positively improve the operating environment although in the short term inflationary pressures may persist with gradual improvements. The group will continue to innovate and maximise on any opportunity which avails itself including prospects of linkages with local and regional players," he said.
This was regardless of the group's cost containment measures employed in the period under review.
During the period, Zeco generated revenues of US$126 000 compared to US$82 000 in prior year.
The group's asset base stood at US$39,195 million. Group chairperson Phillip Chiyangwa said the operating environment during the first six months under review started showing positive signs as the new government enacted investor friendly policies.
"However liquidity challenges persisted and foreign investor kept a wait-and-see attitude as the country went into election mode. Costs containment continued but revenue could not cover operating costs resulting in a negative bottom line of US$67 500 compared to compared to the US$754 000 loss in 2017. The group asset base stood at US$39,195 million," Chiyangwa said.
Rental income increased to US$72 468 from US$70 125 in 2017.
Chiyangwa said the group's flagship subsidiary, Delward Engineering, was not spared in its core business activities due to the challenging economic environment with no major projects undertaken during the period under review although positive leads persisted.
Delwards relies on infrastructure projects.
On the other hand, he said Crital Hopes' performance continued to be encouraging with improved results from prior year with new construction starting to take off in the country, emanating from the positive environment. He said the remodelling of its other subsidiary, Zimplastics is expected to provide a positive outlook due to the new dispensation.
"The new impetus brought in by the new dispensation and positive policies being enunciated by government should positively improve the operating environment although in the short term inflationary pressures may persist with gradual improvements. The group will continue to innovate and maximise on any opportunity which avails itself including prospects of linkages with local and regional players," he said.
Source - the independent
