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ZIMPLOW Holdings Limited has completed the disposal of Bulawayo Steel Products trading as Tassburg to retiring members of management for US$500 000 with effect from November 1, 2013. Company secretary Mr Maxwell Chino- rwadza said the disposal was unconditional, having received all the regulatory approvals at the Zimbabwe Stock Exchange.
“The disposal will allow Zimplow to streamline its operations and focus on its key strategic objectives,” he said.
Mr Chinorwadza added that further details of this transaction would be made available in the next financial results of the company.
The disposal of Tassburg, following the offloading of Puzey & Payne, will complete part of the process of rebranding Zimplow Holdings after the takeover of Tractive Power.
Puzey & Payne was sold to former chief executive Mr Charles Nyambuya for a consideration of US$1,56 million which will be paid on a structured basis.
For the six months ended June 30 2013, Zimplow managed to achieve a profit, mainly boosted by proceeds from the disposal of Puzey & Payne.
Operating profit was at US$726 388 from revenue of US$20,1 million but gains on the disposal of US$1,8 million saw the group report a bottom-line of US$1,17 million.
Zimplow is targeting to achieve US$100 million turnover by 2015, from US$35 million during the year ended December 31, 2012.
The company this year sold its motor vehicle dealer Puzey & Payne for US$1,6 million but a gain of US$1,8 million was recognised as the proceeds exceeded the carrying amount of the asset.
Addressing an analysts briefing recently, the company’s chief executive, Mr Zondi Kumwenda, said tractor volumes were lower this year compared to last year and the group was looking forward to seeing how the US$5 million line of credit would help push the volumes up.
The Zimplow boss added that capacity utilisation was low at the firm’s manufacturing division but volumes have been higher in the construction and animal-drawn equipment divisions.
The Zimbabwe Stock Exchange-listed group has attributed the low volumes at some of its divisions, particularly manufacturing and tractors, to the liquidity crunch pervading the entire economy.
Zimplow is now made up of Tractive Power Holdings, fully acquired early this year having been owned 57,2 percent since August 2012, Farmec, 65 percent owned joint venture Northmec, earthmoving equipment dealer Barzem, animal-drawn implements unit Mealie Brand and CT Bolts.
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