Itai Ndongwe
Zimplow Holdings is confident that it will complete the acquisition of 49% of Barzem from Barloworld Equipment UK by the end of this month.
Zimplow’s decision to acquire full control of Barzem would broaden the company’s footprint in the mining, construction, and infrastructure industries.
The company CEO Vimbai Nyakudya told FinX that, “we should have finalised by month end if all goes according to plan.”
This is expected to strengthen the performance of the group’s new business unit Tractive Power Solution (TPS), which was formed to provide earthmoving and heavy equipment solutions to its customers.
According to the company’s third quarter trading update ended September 30, 2023, Zimplow is using capacity created through TPS to service the earthmoving and heavy equipment customer segment, and it is also set to finalise the Original Equipment Manufacturer (OEM) acquisition, which will be announced once the Barzem transaction is completed.
The company is also making success in establishing itself in strategic locations such as Bulawayo, Mutare, Hwange, and Chiredzi. “Maintenance of the right stock holding levels remains a key priority in order to ensure seamless service delivery to clients.Performance for the business unit has been growing, as evidenced by a growth of 53 percent from the first quarter to the second quarter of the year.
In the third quarter, Zimplow’s performance increased by 82% compared to the second quarter of 2023, owing mostly to service level agreements with important fleet owners.Zimplow manufactures and distributes agricultural equipment, mining supplies, and a wide range of engineering solutions. Its product portfolio includes agricultural implements, irrigation equipment, generators, pumps, and mining machinery.
For the period under review, the group’s sales fell 7% to US$23.6 million from the same period last year, owing mostly to the adverse operating climate it is presently experiencing.
Sales volumes for domestic implements at 14 220 remained flat compared to the same period last year, while sales volumes for the export market at 10 276 increased by 13% compared to the same period in 2022.
The business intends to build on its strong performance in the local market by doing further client visits and establishing partnerships with wholesalers and non-governmental groups.
