Zimplow shareholders to approve dividend

(number 68) of US0,27 cents per share, indicating that it is subject to shareholders’ approval at the Annual General Meeting scheduled for March                     28.
The dividend will be paid on or about March 14, 2012 to ordinary shareholders registered in the books of the group at the close of business on Thursday March 8, 2012.
“The share register will be open on or about March 14, 2012 to ordinary shareholders registered in the books of the Group at the close of business on Thursday  March 8, 2012,” said the company in a recent statement.
The declaration of the final dividend comes as the company posted an impressive set of financial results, reporting a 16 percent increase in profits to         US$2,7 million.
The earnings per share was, however, unchanged at US0,01 cents due to a share swap in which the company acquired a 49 percent stake in African Traction and Associated Technologies (Afritac).
Group revenue for the year ended increased by 26 percent to US$15,5 million as compared to US$12,3 million for the same period in 2010. The increase was due to improved local market as well as additional revenue from the new acquisition.
Domestic revenue increased by 30 percent while foreign revenue improved by 17 percent.
In terms of production, the flagship unit, Mealie Brand, recorded a 27 percent growth in total implements to 74 113 units, with domestic units sales registering a 46 percent growth as the company benefited from the Protracted Recovery Programme (PRP) which enhanced sales.
Exports grew by 8 percent to 31 724 units as drought in East Africa delayed seasonal take-off and cheap products from the East limited exports.
The spares units declined by 11 percent to 570 464 due to carryover stocks from 2010. Late rains and the liquidity challenges also suppressed revenue growth while local cost increases weighed down margins.
CT Bolts operations recorded a mixed performance with certain products, for example mild steel bolts recording a 22 percent growth to 118 674kg while nails and miscellaneous recorded declines.
Tassburg has turned the corner although its contribution to the group remains small, management said the division was no longer losing money.
Afritrac, which is involved in the importation and sale of animal-drawn implements and tools, contributed US$1,5 million and US$145 000 to turnover and profit-before-tax in its 10 months of trading post the acquisition.
The company, however, expects greater cost pressures in the outlook period due to anticipated huge wage demands, increases in utilities’ charges and full impact of the 51 percent tariff hike by power utility Zesa Holdings which was effected last year.