Zeco stuck in the red, FY17 after-tax loss up 63pc

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HARARE – Struggling engineering firm, Zeco Holdings saw its after-tax loss for the year ended December 31, 2017 increasing by 63 percent to $2, 1 million compared to $1, 3 million recorded in the prior period owing to operating costs.

Group administration expenses went up 32 percent from $1, 7 million reported in the prior year to $2, 3 million.

Cash generated from operations declined by 97 percent from $451, 396 recorded previously to $13, 834.

However, revenue for the group increased by 46 percent to $513, 078 from $351, 279.

“Revenue could not cover operating costs in spite of cost containment  measures, resulting in a negative bottom line of $2, 1 million compared  to the $1, 6 million loss recorded in 2016,”  group chairperson Phillip  Chiyangwa said in a statement on Monday.

Total assets for the group went down by 3, 3 percent to $39, 4 million from $41 million previously.

The group did not declare a dividend.

Chiyangwa said the group flagship subsidiary, Delward Engineering which relies on infrastructure projects, did not undertake major projects during the year.

“However, the revamping of the country’s railways should positively impact on Delward’s performance,” he said.

Due to an improvement in the construction industry and the political economic environment both Crittal Hope and Zimplastics performed better than the previous period respectively.

In the outlook, the group projects entering into partnership arrangements both locally and regionally as the revamping of the economy gathers momentum. –New Ziana

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