Africa-Press – Zimbabwe. ENGINEERING concern, Zeco Holdings Limited (Zeco) has overturned its loss-making position to post a profit after tax of ZiG3,16 million in its half year ended June 30, 2025, owing to a near 200% increase in revenue.
The profit after tax was from a loss of ZiG1,65 million experienced during the half year ended June 30, 2024.
In a statement attached to its half-year report ended June 30, 2025, Zeco chairman Benjamin Rafemoyo said the group expected the tight monetary conditions to continue with a stable ZiG currency, resulting in positive economic growth.
“We, therefore, expect positives in the sector as business improves due to innovative initiatives and opening up of new markets,” he said, adding that the operating environment was subdued with signs of recovery in the mining sector.
“The group recorded revenues of ZiG2 062 125 for the six months ended June 30, 2025 compared to ZiG689 591 for the same period last year,” Rafemoyo said.
“Other income from rentals amounted to ZiG6 058 865 during the same period.
“The group reported a profit of ZiG3 165 591 for the period.
“Total assets as at June 30, 2025 amounted to ZiG85,773 million.”
However, despite the overturning of its loss-making position, the group’s liquidity position remains precarious.
During the reporting period, Zeco recorded having ZiG0,72 to every ZiG of short-term debt, leaving the company in an illiquid position.
This level of liquidity is also a drop from the ZiG0,76 the firm recorded to every ZiG of short-term debt at the end of 2024.
“The following are some of the key initiatives in place that support the continued preparation of the group’s financial statements on a going concern basis,” Zeco said.
“Additional revenue is now being generated from Crittal Hope renting out space; Major construction work is underway at Dingani Investments and upon completion, management will explore new revenue stream from the project.
“The group also hires workers according to the number of ongoing projects so as to minimise on their staff costs.
“The group is actively applying for new tenders so as to increase revenue generation.”
The firm’s directors have satisfied themselves with the group’s ability to continue operating as a going concern.
“The going concern reporting basis has been maintained with the view of anticipated improved operational prospects for the entity,” Zeco said.
However, while management has put in place measures to preserve cash and secure additional finance, these circumstances create material uncertainties over future operating results and cash flows.
Despite this, the management has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
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