Tractive Power Holdings (TPH) expects key national projects in mining, road and dam construction to boost group revenues in the second half of the year.
This was after adverse economic environment hampered the company’s performance in the first six months of the year.
TPH posted a profit after tax of $908 134 for the six months ended February 2012.
Revenue in the interim period was at $22 million from $18,9 million in the previous year.
In a statement accompanying the group’s interim results, TPH said the economy was characterised by tight liquidity constraints, high interest rates and low disposable incomes.
“The group expects an improvement in trading volumes during the second half of the financial year due to the anticipated improvement in the market liquidity,” the group said.
“A number of key national projects on mining, road and dam construction should boost the group’s revenues during the second half of the financial year.”
Total assets for the group stood at $30,8 million for the period under review. Operating profit was 1, 1 million from $1, 4 million in February 2011.
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The group’s tractor generator unit sales at Farmec and Northmec Zimbabwe, declined by 27% and 2% respectively.
TPH paid net finance costs of $0,24 million emanating from short-term borrowings to fund working capital requirements.
Service volumes declined by 9% in the previous period. Comparative positive growth was, however, achieved on earthmoving machine sales at Barzem, motor vehicles at Puzey & Payne and Parts, which increased by 140%, 75% and 17% respectively.
TPH owns Manica Road Investments, Puzey and Payne and Farmec, while it owns in part Barzem and Northmec at 65% and 50% respectively.
Manica Road is a property investment company, Barzem sells caterpillar and Hyster equipment while Puzey and Payne handles Peugeot, Mazda, Toyota and Mistubishi vehicles.
The Reserve Bank of Zimbabwe disposed of the holdings company last year. The central bank used to own 58,75% of TPH.
