Zimplow resets focus on key sectors

VICTORIA Falls Stock Exchange (VFEX)-listed diversified manufacturer, Zimplow Holdings, says it is resetting itself to assert its status as the supplier of choice for agriculture, mining, infrastructure, and automotive equipment solutions.
This comes as the company has reported a growth in revenue in inflation adjusted terms of 77 percent for the half year period ended June 30, 2023 from the prior year.
“The group is also on course to recover from the gap caused by the termination of the Caterpillar distribution agreement at the end of September 2022, through the launch of two new business units — Tractive Power Solutions and Valmec — as well as the implementation of the Mealie Brand capacitation project,” Zimplow chairman Godfrey Manhambara said in a statement accompanying the half year financials.

The company expects the acquisition of the 49 percent shareholding in Barzem held by Barloworld Equipment to be completed in the near future. Tractive Power Solution is expected to springboard a new mining equipment Original Equipment Manufacturer (OEM).
“Discussions are ongoing with a potential OEM to replace Barzem,” Manhambara said.
Whilst the group is confident of growth driven by the mining, infrastructure, and automotive clusters, the forecast of the El Niño rainfall pattern may reduce the group’s growth prospects as the agricultural cluster still constitutes a significant component of the business.”
Zimplow’s chief executive, Vimbayi Nyakudya, acknowledged challenges with inflation-adjusted reporting, saying it might not offer a fair reflection of actual performance.
“However, when I looked at our performance for the first half year, I was encouraged by the resilience that Zimplow now has,” Nyakudya told The Financial Gazette this week.
“We have spoken about the growth trajectory that we are pursuing and we have spoken about the internal capabilities that we have built up. We have spoken about new initiatives, one of which we have followed up with the launch of Valmec.
“The mining and infrastructure segment is the segment which I am betting on for the future. We had the termination of the Caterpillar distributorship in September 2022, and following the discussions that ensued, we are following up on the option to buy the shares that were owned by our joint venture partners.
“We are in the final stages, which I believe in the next month or so we should be done with the acquisition of the other partner’s stake. After we are done with the acquisition, we will definitely come back to the market to give you an announcement in terms of the OEM acquisition activities and initiatives that we have been undertaking,” Nyakudya said.
“I am confident and, like I said, I am betting on the mining and infrastructure segment to result in the growth that we are looking for in the group.”
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