DIVERSIFIED agro-industrial group Ariston Holdings Limited says it will remain in business after securing an additional US$3 million in loans.
The group reported a half-year loss of US$1,43 million for the period ending March 31, 2025 — a 32% improvement compared to the previous year. However, its financial position remains precarious, with only US$0,90 available for every dollar of short-term debt, leaving minimal working capital for future operations.
This follows a challenging financial year ending September 30, 2024, when Ariston posted a US$4,28 million loss.
The loss was attributed to persistent operational difficulties, including a negative working capital position and an asset base dominated by illiquid, specialised agricultural holdings.
In the latest half-year period, rising production costs further strained the company’s financial performance, compounding existing liquidity pressures.
“The directors have undertaken a detailed review of the going concern status of the group and are satisfied that the group has adequate resources to continue operating for the foreseeable future,” Ariston said in its half-year report.
“In forming this view, they considered the diminishing impact of the Covid-19 pandemic and the ongoing implications of the Russia–Ukraine conflict. These global developments have contributed to increased production costs and continued pressure on commodity pricing.”
Ariston said to stabilise operations and enhance efficiency, several cost-reduction initiatives were currently underway, including a comprehensive staff rationalisation exercise and increased automation of key processes.
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“The directors’ assessment included a review of the group’s financial performance and position as at March 31, 2025, as well as an evaluation of short- and medium-term prospects,” Ariston said.
“This assessment took into account the prevailing economic environment in Zimbabwe, global market dynamics for the group’s export commodities, climate change risks, and supply chain considerations.”
To address the impact of erratic rainfall, the group invested in irrigation infrastructure. Consequently, in 2023, a solar power plant was commissioned to reduce reliance on diesel generators and mitigate the effects of ongoing power outages leading to significant cost savings.
“Further, solar installations are planned at Roscommon, Clearwater, and Kent estates,” Ariston said.
To strengthen its financial position, the group secured US$3 million long-term funding for capital expenditure and working capital.
“The maturity profiles for these loans are April 2026 for the working capital and December 2027 for capital expenditure repayments. This will afford the group sufficient time to stabilise operations, improve liquidity, and return to profitability,” it said.
The group’s current liabilities exceeded current assets by US$930 572, largely due to the process of replacing short-term borrowings with longer-term facilities that was ongoing.
