Share price moved up by $0.01
· This followed the trading of over 2,5 million shares for $758
· ZECO’s going concern still remains in the balance
Harare – Zimbabwe Stock Exchange (ZSE) listed engineering firm, ZECO Holdings yesterday recorded a surprise move in its share price for the first time since 2015.
The share price of ZECO moved up by 50 percent from ZW$0.02 to ZW$0.03 after 2 527 380 shares were traded for ZW$758, probably in an inhouse trade.
The margin of motion itself is just as shocking as the move seeing as the ZSE regulatory threshold only allows for share price movement of 20 percent either to the negative or positive.
ZECO has been troubled and its going concern has been hanging in the balance for a while.
As at December 31, 2019, the company’s total current liabilities stood at ZWL$6,347 582 against total current assets amounting to ZWL$ 1,863 408 meaning in that period, the company’s current liabilities had exceeded current assets by ZWL$4 484 million.
In the half year to June 30, 2020, the company recorded an inflation adjusted loss of ZWL$7,62 million, only worsening from a loss of ZWL$7,41 million recorded in the six months to June 30, 2019.
The company has always been quick to attribute their string of perennial losses to a tough operating environment and also recently the COVID-19 pandemic but say they continue seeking investment and expansion prospects.
In 2014, Zeco was ranked the worst governed company on the stock exchange at the Institute of Chartered Secretaries and Administrators of Zimbabwe awards (ICSAZ).
As a result, the company scored badly on the ICSAZ adjudication template prepared by the institution.
In 2016, the ZSE suspended the listing of Zeco for failing to pay listing fees and failure to convene annual general meetings with shareholders.
The firm is into engineering, fabrication and plastic blow moulding.
ZECO’s market cap is currently only $139 000 and there is not much light being seen for the entity at the end of the tunnel.
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