Zimplow to dispose more non-core assets

HARARE - Zimbabwe Stock Exchange-listed agro-industrial concern, Zimplow, is set to dispose more non-core assets in the coming year as the group seeks to restructure debts and focus on its primary business.

Group chairman, Zed Rusike, said the group — with total debt of $16,7 million as at December 31, 2014 – wants to dispose commercial and residential properties in Masvingo, Bulawayo and Gweru.

“The properties, which were previously classified as investment properties, did not lead to an impairment loss on their reclassification and the group expects that the fair value of the properties will be greater than the carrying amount,” he said.

This comes as the group recently disposed non-core operations Puzey & Payne and Tassburg.

The Puzey & Payne business, which was essentially a motor vehicle, spares and generators dealer and was also involved in servicing vehicles and held a Peugeot dealership in the country, had been haemorrhaging due to the influx of cheap imports, mostly in the form of second hand makes from Japan.

Meanwhile, Zimplow recorded an operating loss of $2,4 million in the 12 months to December 2014 compared to a loss of $361 042 recorded prior year comparative. A turnover of $ 35,9 million was realised for the period under review. No dividend was declared.

Last month, Mauritius-based Sino Properties (Proprietary) Limited (Sino Properties), became a major shareholder in Zimplow after snapping up a 59,4 percent stake in the agro-industrial concern.

Sino Properties increased its stake in Zimplow after underwriting a $5 million rights issue, which was under-subscribed.

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