HomeNewsLoss-making Zeco misses ZSE deadline

Loss-making Zeco misses ZSE deadline


ENGINEERING group Zeco Holdings has missed the Zimbabwe Stock Exchange (ZSE)-stipulated period to release audited financial results after a set of its unaudited results indicated the group  marginally reduced its loss for the six months to June to $716 317 from $889 403, recorded during the same comparative period, buoyed by improved revenue.

Report by Bernard Mpofu, Chief Business Reporter

The company this week issued half-year results which did not carry an independent auditor’s opinion within the stipulated three months, in line with trading regulations, amid indications that it was struggling to remain afloat.

It could not be established at the time of going to print whether or not the group could have faced censure from Securities Commission of Zimbabwe.

ZSE listing rules in the possession of NewsDay show that companies missing the due date for publishing audited results should instead publish unaudited results.

“If a listed company has not distributed annual financial statements to all shareholders within three months of its financial year end, it must publish in the Press and distribute to all shareholders, a preliminary report even if the information is unaudited at that time,” reads part of the ZSE listing requirements.

“On the day following the due date of issue of the listed company’s interim/preliminary report, a letter reminder will be sent by post or facsimile to the listed company requesting that it rectify the situation and advising that it has been granted a period of one month, from the date of such reminder, in which to issue its interim/preliminary report, failing which the company’s listing will be suspended and a special meeting of the committee will be convened to consider the continued suspension or termination of the company’s listing . . .”

The group’s revenue was up 5,03% to $895 991 with the firm anticipating strong growth as the economy continues to recover.

The ZSE-quoted firm is planning to construct a shopping mall in Ruwa with indications that local and regional players had expressed support for the project.

“We foresee increased activity in some industry sectors that feed directly into our activities such as construction, mining and telecommunications.

“We continue to have a number of contracts currently on hold due to unavailability of funds on the part of our customers,” Zeco chairperson Phillip Chiyangwa said in the statement accompanying results.

“We expect improved and increased revenue in the last quarter as we pursue ways to deliver sustainable value. However, we forecast pressure on inflation due to the looming food deficit and rand to United States dollar exchange rate volatility.”

Zeco is one of the most under-capitalised manufacturing sector firms that have struggled to grow business since introduction of multiple currencies in 2009.

Zeco last year held the top position for being the most illiquid counter on the ZSE having traded only $314 worth of shares in 2011 and having last traded on June 23.

Early this year, the engineering group was one of four listed companies which breached ZSE listing requirements after failing to release financial results for the period ending December 31 2011 within the stipulated three months.

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