Zimplow reports small profit on Puzey & Payne disposal

Zimplow reports small profit on Puzey & Payne disposal

By Happiness Zengeni, HARARE, September 4, (The Source) – Zimplow Holdings reported a small profit in the six months to June mainly driven by gains from the disposal of motoring unit Puzey & Payne.

Chief executive Zondi Kumwenda told analysts on Wednesday, the performance of the group had been in line with expectations as the group had earlier said it will either make a small profit or break-even.

“We made a small profit of $1.37 million,” said Kumwenda adding that there were no comparatives as Tractive Power Holdings was only acquired midway through 2012.

Group revenue was at $20 million while the group achieved an EBITDA of $1.19 million mainly attributable to the mining and construction business.

Finance Director Francis Rwakonda said the pre-tax profit of $2.2 million was enhanced by the disposal of the motoring division.

Puzey & Payne was sold for $1.56 million but a gain of $1.81 million had been recognised.

Kumwenda said the disposal of the unit would allow the group to focus on key sectors of the economy.

On the outlook, Kumwenda said the uncertainties associated with an election year impacted negatively on the equipment supply business.

“However the second half is ordinarily the group’s strongest trading period for the agricultural part of the business and recovery of this sector will see the group post operating profits for the year to December,” Kumweda said.