admininto the results.
“TPH operates in a high capital-intensive market that requires asset- based finance as well as medium- to long-term financing structures, however, we are pleased to have acquired this business and are confident about the considerable upside potential the business possesses.
“We incurred finance costs amounting to US$1 million mainly from legacy debt in TPH since Zimplow did not have much debt on its capital structure,” said the group in a statement accompanying the results.
The acquisition of TPH, however, more than doubled Zimplow’s revenue for the period under review from US$15,5 million the prior year to US$35,6 million. The group’s total assets also increased by more than 200 percent to end 2012 at US$53,2 million up from US$16,7 million in December 2011.
“The group recorded revenue of US$35 610 823 enhanced by the acquisition of TPH Limited and this made us realise a profit before interest and tax of US$1,78 million though it falls short of the US$3,5 million realised the preceding year,” added the statement.
The period under review was also characterised by a decline in performance and production in sectors such as agriculture and this also affected the group’s overall performance.
“Mealie-Brand, which is involved in the manufacture and distribution of animal-drawn agricultural equipment, recorded a 10 percent decline in total volumes from last year mainly due to a negative swing in local implements volume sales,” read the statement
Zimplow, however, expects that assets they acquired will perform well so that the group can be consolidated into a formidable unit.
Companies that fall under the Zimplow group are Barzem, Puzey & Payne, Mealie-Brand and Farmec.
Online Reporter