ZIMPOST says it generated $19,3 million in revenue in the 11 months to November, which was 12% below the $22 million achieved last year, as liquidity challenges and working capital constraints affected its operations.
BY MTHANDAZO NYONI
Acting managing director Sifundo Moyo told NewsDay that this year, the company had targeted to grow its revenue by 10% from the $22 million generated last year.
“The company did not meet its target revenue mainly due to liquidity challenges in the market, as well as working capital constraints that affected operations,” Moyo said.
“The company performed at 82% of budget and 88% on prior year revenue. Retail was mainly affected by foreign currency shortages resulting in the business being unable to import some stationery lines that are in demand”.
Moyo said the business was expected to narrow the gap as they moved towards the end of the year.
The company had been facing challenges of a growing debtors’ book, as more and more customers were taking long to pay up for services rendered.
But Moyo said the situation was improving as the debtors’ book has not been static.
“There have been some positive movements as the company had to creatively find a solution to the growing debtors’ book,” he said.
“Among other tactics, we entered into tripartite set-off arrangements that involved some of our creditors and debtors resulting in a significant reduction on amounts owed to Zimpost.”