ZIMRE Holdings Limited (ZHL) is reviewing its investment in CFI Holdings and plans to dispose of some of its non-performing and non-core assets locally and externally, an official has said.
Business Reporter
The group has several associates companies locally and in Uganda, Malawi, Zambia, Mozambique and South Africa.
ZHL chairman Benjamin Kumalo said in interview that the group was looking at rationalising its structure by disposing of several non-performing as well as non-core investments.
“We have a wide asset base including immovable property. We are planning to leverage some of our immovable property through partnerships for property development.
“We are also planning to maximise returns from our property investments through improved rental income collection,” he said.
Kumalo was hopeful that only a few jobs would be affected by the process. “These initiatives, we believe, will raise substantial amounts that will be used to improve group cash flows and profitability,” he said.
ZHL and its subsidiaries hold over 29% in CFI through investment vehicles.
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“We are also reviewing our investment in CFI to see how best we can make this agro-industrial sub-group realise its full potential through partnerships and other initiatives,” he said.
CFI has been looking for investors to take up a significant stake in the company.
Kumalo said the group had plans to widen its product portfolio by developing capacity to underwrite new business lines in growth sectors of the economy such as mining and energy.
ZHL gross premium written (GPW) remained flat for the year ended December 2013 and profit declined to $1,7 million during the period under review.
Latest trading figures released by the group indicate that its profit fell to $1,7 million in 2013 compared to $3,6 million in 2012. The group recorded a GPW of $76,89 million during 2013 compared to $76,86 million in 2012. GPW is the total premium written and assumed by an insurer before deductions for reinsurance and ceding commissions.
