Harare – ZECO Holdings Limited’s revenue for the full year ended 31 December 2018 increased by 21 percent to close at US$0.620 million compared to US$0.513 million in the prior year.
The company missed the results publication deadline which was initially extended from 31 March 2019 to 30 April 2019 following the currency devaluation in February 2019. In its application, the company said the delay was due to circumstances beyond its control.
ZECO has been going through a series of difficulties underpinned by negative bottom line recorded over the previous periods and suspension from the local bourse in November 2016 over reasons of failing to comply with listing requirements.
In a statement accompanying the financial results, Group Chairman Dr Phillip Chiyangwa highlighted that the increase in revenue could not cover operating costs as loss slightly improved by 26 percent.
“Revenue could not cover operating costs in spite of cost containment resulting in a negative bottom line of US$1,587 million, a slight improvement as compared to the US$2,133 million loss recorded in 2017,” he said.
The Group’s asset base stood at US$38.231 million, a decrease of 3 percent compared to US$39.436 million in the prior year.
Dr Chiyangwa said that no major projects were undertaken at Delward Engineering which is the group’s flagship subsidiary based in Bulawayo, due to the subdued economic environment and unpredictable environment.
“We hope the long awaited positive revamping of the country’s railways will happen and thus will positively Delward’s performance,” he said.
At Crittal Hope, which is in the construction sector, Dr Chiyangwa said its performance was better that the previous year due to aggressive marketing and new activities in the construction industry, however, performance was curtailed by increases in raw material costs and the pricing of materials in US dollars and shortage of foreign currency.
“Positive performance is expected this year as a few stalled projects are expected to take off in the industry,” he said.
Dr Chiyangwa said remodelling of Zimplastics continues and a positive outlook is envisioned once the economic environment stabilises.
Going forward he said the group envisages entering into positive partnership arrangements within the country and the region as revamping of the country’s railways take place with a positive spillover to the group.
“Positive linkages with foreign players look more realistic this year,” he said.
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment.