Zimplow bounces back to profitability

LISTED agricultural manufacturing firm, Zimplow, returned to the black after posting an after-tax profit of $263 000 for the half-year to June 30, 2017.

The upturn was from a loss position of $2 million in the prior comparable period. The group’s revenue for the period under review increased by 77 percent to $14, 7 million on the back of enhanced operational efficiency.

Said chief executive officer, Mr Mark Hulett, in a statement accompanying the results: “Efficiency in cost of sales and the right product mix improved margins; operating expenditures were reduced by 57 percent; finance costs reduced by 82 percent.”

In respect of the group’s various divisions, flagship Mealie Brand recorded a significant rise in volumes. The trading volumes for animal drawn implements in the first half improved by 371 percent, compared to the prior comparable period on export orders.

“The volumes of exported implements grew by 1 445 percent while local implements volumes were up by 103 percent,” said the CEO.

“The unit also welcomed the protection provided to our animal drawn implement business through Statutory Instrument 64, which has already positively influenced the business unit’s volumes during the current tobacco selling season.”

Another subsidiary, Barzem, saw its volumes increasing by 150 percent from the same period in 2016.

“The expansion in mining, energy and gold sectors saw sales growth in earth moving CAT units of 550 percent in the first six months compared to same period last year,” said Hulett.

Powermec recorded an improved performance while CT Bolts turnover rose by 13 percent. Going forward, management expects an improvement in working capital availability in view of the group’s gearing which has been reduced; better stocking levels; reduced operating costs, and a “disciplined and anticipatory approach to procurement”, among other factors. — BH24.