DIVERSIFIED group, Zimplow Holdings Limited (Zimplow) is disposing of one of its properties for US$3,2 million to realise capital and focus on high-return avenues after recent losses.
Zimplow manufactures and distributes equipment in the agricultural, mining, infrastructure equipment, services and logistics, and automotive sectors through several subsidiaries.
Owing mostly to the drought of the 2023/24 agricultural season, Zimplow posted a loss of US$2,16 million last year, as this segment contributed 96,6% of the group’s operational losses.
This loss was from a profit after tax of US$559 871 in the prior year, down from 2022’s comparative of US$918 837 due to a challenging operating environment.
The recovery from the loss-making position continued to be slow as during the group’s half year period ended June 30, 2025, Zimplow posted a loss of US$499 586 though an improvement of about 70% from the prior year’s loss-making position.
The loss reduction was driven by staff rationalisation, cost containment, improved supplier pricing and payment negotiations, and asset
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disposals.
These asset disposals, in particular, were first announced last year as a way of quickly raising capital for the group to refocus activity on high-return avenues.
With the agricultural and mining sectors having an unprecedented comeback this year, from 2024, the group is looking to channel the funds from the asset disposals into these fields.
“The board of directors of Zimplow Holdings Limited (Zimplow or the company or the group) has resolved to dispose of the property situate on Stand 30001, Dagenham Road, Willowvale Township, Harare (Dagenham Property), following the consideration and acceptance of an offer from the Hailing Family Trust for a gross consideration of US$3 200 000,” Zimplow said in a circular to shareholders.
“The Dagenham Property was identified as a non-core asset and is being disposed of in line with the group’s broader strategy of portfolio optimisation and capital reallocation.
“The proposed transaction will be concluded by way of an outright sale, with proceeds payable in full on date of signature of the agreement of sale.
“On completion, the abovementioned property will cease to form part of Zimplow’s operations or asset base.”
Zimplow said this transaction will enable the group to strengthen working capital, improve inventory cycles, and invest in capacity expansion.
Last year, the group raised US$2,75 million through the identification and disposal of non-strategic assets, comprising residential and commercial properties.
The proceeds from the disposal of the abovementioned assets were channelled towards working capital to consolidate the group’s position in the mining and infrastructure sector pursuant to the successful conclusion of the Barzem transaction.
“Capital efficiency and liquidity enhancement: The proposed sale will generate cash to fund working capital, improve inventory cycles, and invest in capacity, effectively turning a non-productive asset into resources that drive returns,” Zimplow said.
“Asset portfolio optimisation: The proposed disposal aligns with the asset rebalancing strategy by reducing non-core real estate misaligned with the group’s focus on lean, operationally linked assets.
“The disposal will improve capital productivity and ensure assets contribute effectively to the group’s value creation objectives.”
On supporting the balance sheet, Zimplow said the cash proceeds would enhance its liquidity and provide greater flexibility to respond to growth opportunities or market fluctuations.
“Zimplow shareholders are being called by notice dated November 19,2025 (which is attached to and forms part of this Circular) to attend an EGM [extraordinary general meeting] of the company which will be held on Thursday December 11,2025 to consider and, if deemed fit, to approve the proposed transaction,” Zimplow said.