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NewsDay

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Zeco Holdings in the red

News
Engineering firm Zeco Holdings has remained stuck in the red after posting an after-tax loss of $1,9 million in the year ended December 31 2011, as operating expenses continued on an upward trend. In 2010, the company recorded a loss after tax of $0,95 million. Zeco was one of four companies that failed to furnish […]

Engineering firm Zeco Holdings has remained stuck in the red after posting an after-tax loss of $1,9 million in the year ended December 31 2011, as operating expenses continued on an upward trend. In 2010, the company recorded a loss after tax of $0,95 million.

Zeco was one of four companies that failed to furnish shareholders with financial statements within the stipulated timeframe.

Zimbabwe Stock Exchange requires listed entities to publish their results within three months of their financial year end.

Other companies yet to release results are Gulliver Consolidated and financial services group, Interfin. Pioneer Holdings released its set of results a fortnight ago.

In a statement accompanying its financial results board chairman Philip Chiyangwa attributed the loss to increased depreciation as a result of revaluations done in 2010 underpinned by low revenue streams.

Revenues were up 5% to $2 126 928 against a growth in operating expenses of 66%.

“This growth in expenditure was buoyed by the increased depreciation base as highlighted above,” Chiyangwa said.

“The quality of the group’s earnings is reflective of the crisis bedevilling the industries we are operating in.

“Most capital projects are on hold until the funding becomes available.”

He said the liquidity crunch that characterised 2011 had a negative impact on the company’s operations. Going forward, the group said it was considering diversification of its Ruwa off-road premises into a modern shopping mall and relocate the current business to its Workington premises as a result of shortage of space.

“A study on our premises has shown that our property is well positioned and demand for space is high in Ruwa,” Chiyangwa said.

“This is expected to generate cash for the group.” At the end of 2010, Zeco was the most-lowly ranked share on the stock market, having lost 85% of its value during the year.