Improved market conditions and additional earnings from recently acquired African Traction and Associated Technologies (Afritrac) spurred Zimplow revenues by 26% to $15,5 million for the full-year ended December 2011.
In 2010, one of the countrys largest makers and distributors of agricultural implements recorded total revenues of $12,3 million.
Last year Zimplow acquired 49% of a South African animal traction distribution company, Afritrac. Afritac contributed $1,5 million to turnover and $145 000 to income before tax, over a ten month period.
Zimplow chief executive officer Zondi Kumwenda told an analysts briefing last week domestic and foreign revenues were up 30% and 17% respectively.
The company plans to grow by 20% with the new acquisition in 2012, said Kumwenda.
Zimplow net income before tax for the period under review was $3,64 million compared to $2,92 million the previous year.
Net cash flow from operating activities decreased from $2,2 million in 2010 to $1,8 million as a result of to an advance corporation tax payment of $443 000. Kumwenda said huge wage demands were likely to exert more cost pressures.
The full impact of electricity tariff increases of 51% by the Zimbabwe Electricity Supply Authority and increases in all utilities will be fully felt in 2012. Additionally, rainfall patterns in the region have been erratic, said Kumwenda.
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He said the group would pursue growth strategies aimed at improving local and regional competitiveness.
Mealie Brand volumes increased by 27% to 74 000 implements as compared to 59 000 implements in 2010. Spare parts volumes decreased by 11% in 2011 when compared to 2010. CT Bolts mild steel volume sales were up 15% to 146 tonnes from 127 tonnes.
Mild steel bolts in units increased by 34% in 2011 while high-tensile bolts in units substantially increased by 87%.
Tassburg volume sales increased by 47% to 107 tonnes for the 12 months ended 31 December 2011 as compared to 73 tonnes for the same period in 2010.
