ZIMRE Holdings Limited (ZHL) recorded a profit of $1,2 million for the half-year ended June 30, 2016 from $1,1 million in 2015 due to a decline in operating and administrative expenses.
BY TARISAI MANDIZHA
The profit came despite an 8,3% decline in gross premium written to $38,35 million in the period under review from $41,82 million in the comparable period last year.
In a statement accompanying the group’s unaudited financial results, ZHL board chairman Benjamin Kumalo said the group’s profitability was however, adversely affected by the $1,71 million share of loss from the an agro-industrial associate, which is being restructured to improve future performances.
He said in spite of the difficult economic environment in the local market, the group had recorded improvements in the bottom line performance following recapitalisation in 2015.
Kumalo said the restructuring effected resulted in efficient cost structures and improved business confidence.
“In view of the deteriorating and subdued growth prospects in the domestic market where the group derived about 66% of its total revenue in the first half of 2016, the group is implementing various measures to preserve capital and consolidate its position in the markets and core business in which it operates both locally and regionally,” Kumalo said.
“The group is continuing to implement cost containment measures in view of the increasing pressure on topline growth in the current challenging business environment. In addition the group is also actively considering currency hedging options to protect shareholder value against depreciating currencies in our key market.”
