Almot Maqolo, Staff Writer 
VICTORIA Falls Stock Exchange (VFEX)-listed diversified manufacturing firm Zimplow Holdings (Zimplow) is optimistic about the second half of the year (H2) despite a difficult start as it anticipates reaping the rewards of its diversification and revenue growth strategies.
The firm established new distributorships and solidified its position as a leading equipment distributor after the cessation of the CAT distributorship.
Through its subsidiary, Tractive Power Solutions (TPS), Zimplow has diversified its portfolio to include mining and construction equipment, offering a comprehensive range of services.
“We are down across most sectors, with the exception of Scanlink, in terms of trading volumes. So that comes off the back of some serious economic turmoil. The uncertainty with regard to the introduction of ZiG and obviously the droughts have played a large role in an adverse economy,” Zimplow’s acting group chief executive officer Willem Swan told The Financial Gazette on the sidelines of the company’s annual general meeting recently.
Swan stressed that the currency conversion from ZWL to ZiG had an adverse effect on the company’s operations.
“People were very unsure of where we were going to go, but we are glad to say that it just came and gone, and people have embraced ZiG. I think that the authorities have done a fairly good job of limiting the money supply to tame the inflation that was just eroding everybody’s incomes.
“So, taking into consideration the tight economic and tight cash flows that most of our customers were experiencing, we do hope that we will jump back into the positive terrain in the next six months,” stressed Swan.
With a much more stable exchange and currency regime, most businesses have been projecting a much-improved outlook.
The International Monetary Fund last week praised efforts by the government to stabilise the money market and projected a seven percent inflation rate by end of the year “assuming continued macroeconomic stability,”
As for the financials, the group’s topline during the five months period ended 31 May 202 declined 20 percent to US$10,9 million owing to the El-Nino induced drought, low international mineral prices and global supply chain challenges.
In this period, the group’s business units exhibit a mix of challenges and growth opportunities.
Valmec and Scanlink have shown significant growth, with a 250 percent increase in tractor sales units and a 300 percent increase in bus sales, respectively.
At Mealie Brand, sales volumes of local implements reduced by 57 percent in comparison to the prior year, same period.
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