Tractive Power Holdings Limited (TPH) revenue went up by 22% in the first quarter (Q1) ended November 30 compared to the same period last year buoyed by contributions from its divisions Barzem, Farmec and Northmec.
The group recorded profit after tax of $397 000 during the quarter.
Speaking at the company’s annual general meeting on Tuesday, TPH group chairperson, Richard Wilde, said trading patterns did not change in the period under review.
He said the group’s ability to effectively implement its restocking programmes was affected by low liquidity levels on the market as well as long delivery times for machines and equipment which resulted in low levels of available stocks of all products in the sales mix.
“Despite the economic challenges currently facing the country, the group is well-positioned in terms of its key role in supporting the nation’s priority agrarian and mining sectors,” said Wilde.
The group remains focused on provision of solutions for its customers in all key client sectors of the economy, the retention of its asset base of manpower, property, plant and equipment with the aim of enhancing shareholder’s value.
Wilde said Barzem, Farmec and Northmec had recorded profits in the period while Puzey & Payne posted a loss.
“Barzem performed particularly well during the first quarter period with volumes sales of machines and equipment were 3,5 times ahead of last year’s comparatives,” said Wilde.
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Farmec tractor unit sales were up 43% as compared to the same period last year.
He said the parts and services segments registered improved performance as most farmers embarked on equipment service and maintenance.
New vehicle sales at Puzey & Payne recorded a significant growth of 108% as compared to last year, largely driven by sales of the Toyota brand.
Wilde said Northmec Zimbabwe, a joint-venture company with Northmec RSA, had its tractor sales volumes down by 43% compared to the prior year.
TPH markets and supports machinery and vehicle units. The company’s divisions include Farmec, Puzey & Payne, Barzem, Northmec and Manica Road Investments.
Farmec holds franchises for Massey Ferguson, Perkins and implements brands for Monosem, Kongskilde Vicon, Howard and Drotsky while Puzey & Payne handles Peugeot, Mazda, Mitsubishi, Volkswagen and Audi vehicles.
