HomeBusinessZimplow revenue declines 34% in H1

Zimplow revenue declines 34% in H1

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FARM implements manufacturer, Zimplow’s revenue for the six months to June 2014 declined by 34%t to $13, 3 million from $20,06 million recorded during the same period last year.

MTHANDAZO NYONI
OWN CORRESPONDENT

The group’s performance was weighed down by earth moving equipment sales at Barzem which declined by 58% while lift trucks and generator sets were disappointingly 78% and 60% below respectively.

The group closed with a loss before tax of $2,084 million.

Workshop activity was at 60% below last year due to reduced activity both at local and regional levels.

Total implement volumes for the animal traction business were 5% above last year and exports were 15% up while local volumes were 6% down.

Local spares volumes grew by 137% while export spares increased by 5% giving an overall spares growth of 77% from prior year.

“The economy continued to be hamstrung with liquidity and other structural economic challenges, in the first half of the year, with no signs of getting better.

“While the agricultural units remained steady, the performance of Barzem and CT Bolts were far from being satisfactory and weighed down heavily on the group results,” Zimplow board chairman Zed Rusike said on a statement accompanying group’s unaudited financial results.

The group’s unit, Fasteners, recorded a 34% increase in bolts, nuts and nails that are measured in kg, however, the rest of the volumes measured in units were 34% below last year.

Rusike said a number of national projects that were anticipated to be undertaken in the first half were put on hold, resulting in very thin volumes.

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