CMED (Pvt) Ltd targets $52 million revenue for this year driven by a new business line which involves hiring out bulldozers to government and private players in the construction sector, a company official has said.
By Tarisai Mandizha Business Reporter
CMED managing director Davison Mhaka told members of the Parliamentary Portfolio Committee on Transport and Infrastructural Developament on a familiarisation tour of the parastatal’s Harare depot recently that the company will soon introduce a new business line and has already begun re-equipping the company’s fleet.
It has brought new bulldozers which will be hired out to the government and the private sector.
“We are targeting to record $52 million in 2014 and it is a mammoth task, but the indications are that we will get that far,” Mhaka said.
“We have embarked on a recapitalisation programme, so we are re-equipping our business by buying new bulldozers that we are going to hire out to government for the dualisation programme.”
Mhaka said the company has recorded an increase in revenue to $47,1 million for the year ended December 2013 compared to $44 million in 2012 transport hiring and fuel services.
In the period under review, transport hirer contributed $30,5 million, fuel $11,7 million and Easy go driving school $3,6 million.
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Mhaka said the company was targeting to record a profit of $48 million for the year ended December 31 2013.
CMED was a government department formed around 1948 and was operated as a department up to 2000 when government decided to commercialise it due to depleted fleet and poor services.
Mhaka said the core business of CMED was to provide cost-effective and affordable transport services to government ministries, departments, individuals and the private sector.
CMED hires out vehicles, heavy equipment, motorcycles and vessels to various arms of government and the general public and repairs and maintains the same. It also sells fuel and does engine component reconditioning.
