Zimplow Shifts Focus to Mining
Zimplow Holdings Limited, a Zimbabwean company listed on the Victoria Falls Stock Exchange, is now a fully-fledged mining and infrastructure equipment solutions provider as it fights against El Niño.
By Patricia Rwafa
The company is confident it will achieve profitability in FY24 despite the challenging economic environment.
The company has established a strong presence in the supply of filtration, lubricants, and mining ground-engaging tools. They recently secured Service Level Agreements with key operators and established a new division, Tractive Power Solutions (TPS).
Zimplow’s revenue for the year ending December 31, 2024, was US$32 million, representing a drop of 28 percent from the prior year’s level. Profit for the year decreased to US$0.559 million from US$0.918 million recorded during the comparable year.
Under its mining and infrastructure cluster, Powermec recorded generator unit sales of 6 per cent ahead of the prior year, driven by the erratic power supply experienced in the first and third quarters. However, service hours and parts revenue were subdued by 20 per cent compared to the same period in the prior year due to reduced call-outs during periods of stable power.
While the environment is expected to be challenging due to El Niño-induced drought and the corresponding downstream effects, as well as the impact of soft mineral prices leading to mines retreating or delaying expansion and capital expenditure, management is still optimistic about its FY24 performance.
During the year ending December 31, 2024, Zimplow’s revenue was US$32 million, representing a drop of 28 per cent from the prior year’s level, as Barzem did not trade due to the termination of the CAT distributorship agreement in September 2022. As a result, profit before tax was US$0.68 million, 74 per cent below the prior year. Profit for the year fell to US$0.559 million from US$0.918 million recorded during the comparable year. Total assets dropped to US$46.2 million from US$47.7 million in the prior year.
CT Bolts’ revenue was at the same level as the prior year, while tonnage volume sales were depressed by 6 per cent, mainly due to the sales mix. Pressure on margins and operating costs reduced operating profit by 83 per cent compared to the prior year.
According to the Chief Executive Officer of Zimplow, William Swam:
“The group is insulating itself from the effects of these macro-economic factors. Management is confident that through executing its factory capacitation, the successful launch of the newly acquired OEMs, the strategic business turnaround of the loss-making entities, and embarking on a group-wide cost containment program, it will show commendable growth in revenue generation and profitability in 2024.”
Recently, Zimplow successfully secured Service Level Agreements (SLAs) with key operators, with management optimistic about achieving profitability this financial year, supported by a strong order book and firm demand. This follows the establishment of the new division, Tractive Power Solutions (TPS), which has secured a new distributorship agreement with an earth-moving equipment supplier. TPS has also successfully negotiated an FAW distributorship, enhancing the group’s capabilities in the mining and logistics industry. The FAW brand offers a well-priced, wide range of trucks and bus options suited to the tough African conditions for TPS.