Zimplow share price up 44 percent

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LISTED agro-concern Zimplow’s share price was the biggest mover last week, registering a growth of 43, 8 percent to 0,75 cents from 0,12 cents after the company announced that it expected to record increased profit on the back of the current investor-friendly environment.
The company is also seeking shareholder approval to buy back 20 percent of the company’s issued ordinary shares to enhance returns for its shareholders.
The share buyback would also enhance shareholder welfare, help reduce cost of capital, enhance earnings per share and the overall efficient utilisation of excess working capital.
According to figures from the Zimbabwe Stock Exchange (ZSE), Zimplow’s share price rose from 0,12 cents on August 10 to 0,75 cents on Friday August 17 a 43,8 percent weekly increase.
Year-on-year the share price rose 120,6 percent.
Zimplow has been on a growth trajectory spurred by increased demand for its products on account of government’s Command Agriculture programme.
A good rainfall season and internal strategy execution in which the company divested out of the non-core assets and paid down expensive debt also drove performance.
The company’s turnover was up 38 percent at $20,3 million in the half year to June 2018 compared to $14,7 million in 2017 same period while after tax profit amounted to $1,6 million from a low base of $262,737 during prior year same period.
In an effort to avoid supply gaps, the group continued to pay attention to stocks procurement.
This saw inventories increase to $12,6 million compared to $9 million during same period last year.
During the week under review GetBucks share price was the second highest gainer, recording a 10 percent increase from 0,2 cent to 0,3. Pagenda rose 7,9 percent from 0,65 to 0,65.
During the week under review, trading on the ZSE was mixed as investors were weighing their options and exercising extreme caution ahead of the outcome of the Constitutional Court verdict on the election results challenge by the MDC Alliance.