Firms cautiously optimistic

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ZIMBABWE Stock Exchange (ZSE) listed companies say they are cautiously optimistic about the future of their businesses, despite deteriorating economic fundamentals characterised by low disposable incomes and inflationary pressures.
The companies, which recently published financial results for 2018 said despite the challenging trading environment, they remain “cautiously” positive about their operational strength, new ventures and customer support for their brands.
Hebert Nkala, FBC Holdings’ chairman, said the financial service company remained optimistic that the fiscal and monetary interventions that government was pursuing would yield the desired results, providing the bedrock for strengthening their business development initiatives.
“Digital transformation, investment in ICT capabilities and strengthening our compliance and risk management frameworks will remain the key enablers of our business going forward. We look forward to making significant strides as we embark on our exciting digital transformation journey,” he said about the group’s outlook.
Douglas Hoto, First Mutual Holdings Limited group chief executive, said the company entered 2019 with a position to increase investment in client driven innovation and create efficiencies through operating model integration.

“This is expected to result in accelerated growth and free cash flow generation. We are excited about this next step and what it means for our clients and other stakeholders,” he said.
First Mutual Properties (FMP) said the general outlook over the long term remained positive with real economic growth estimates for Zimbabwe ranging between 3,7 percent and seven percent for 2019.
“Despite the challenges around debt to GDP ratio, limited availability of foreign currency, fiscal deficit, multiple tier pricing and cash shortages, forecasts remain positive against the backdrop of the government’s policy changes targeted at containing the fiscal deficit, promoting investment and increasing production,” Elisha Moyo, FMP chairman said in a statement accompanying the company’s financial results.
He said in the short term, the market is projected to remain an occupier’s market due to excessive supply of space and the lack of quality assets to absorb either expanding or new market entrants.
Rental rates are, however, expected to rise in the short term, as property investors seek to maintain real rental values in the face of rising inflation.
“Real estate markets are positively correlated to macroeconomic performance. Therefore, any economic recovery is expected to have a trickle-down effect on the property sector,” Moyo said.
Turnall Holdings said it was looking forward to strengthening its financial performance and its market position in the current year after recoding a profit this year from a loss position last year.
Sydney Mutsambiwa, First Capital Bank’s chairman, said the transition programme the bank has embarked on was progressing well, and investment in new and enhanced technology platforms was on track for delivery in the first half of 2019.
“A key step in the transition from Barclays PLC, during the year under review was the shareholders’ approval to change the bank’s name to First Capital Bank Limited in July 2018 leading to the adoption of a core brand in October 2018. The bank is very confident in its ability to deliver superior value to its customers and other stakeholders well into the future,” he said.
Gregory Sebborn, Masimba Holdings chairman, said the resolution of key economic indications, in particular availability of foreign currency and improved investor confidence, will contribute significantly to the unlocking of major infrastructure projects in the country.