Agro-industrial firm, Zimplow Holdings boosted its revenue for FY2018 to $48.7 million, up 25% from $39.1 million as the group’s units recorded improved output during the period under review.
Cost containment measures implemented in the period under review helped improve the net profit percentage up from 9% to 12%.
Net profits available to the shareholders were up by 76% from $3.4 million to $6 million.
The group’s key subsidiary – Mealie Brand’s turnover rose 9% from $11.5 million to $12.5 million with the mix tilted towards more profitable local sales.
Management said Mealie Brand’s underlying volumes of local implements were up 19% to 43 490 with exports down 48% to 23 610.
And due to effective cost management net profits went up 41% from $2.9m to $4.1m. Mealie Brand generated sufficient export sales to sustain itself as well as to fund other divisions of the group.
Farmec’s revenues increased by 59% from $11.1 million to $17.7 million on the back of a strong showing in tractor sales.
Tractor sales were up 75% from 95 units in 2017 to 166 units in 2018. Massey Ferguson tractors were 90% of the volume with Valtra making up the balance. Workshop hours sold were flat on last year at 11 716 hours.
Net profitability for Farmec was up 145% from $1.1 million to $2.7 million.
Powermec recorded the biggest jump in turnover with a 116% increase from $1.9 million to $4.1 million as Gensets were 80% of the turnover with parts and service making up the balance.
Management says it will look to increase the relative contribution of more predictable parts and service revenues to the total mix. However, GP margins were squeezed due to lower stock turn and consequently Powermec made a profit of $350k, which was up only 18% on prior year.
Barzem’s revenues were up 7% to $12.7 million.
“While the sales mix of 40:60% between whole goods and parts/ service was good, profitability remains muted as the business currently operates at a fraction of its potential. Alignment of shareholder objectives and interests is the first step towards putting Barzem in a position to competently serve the local market. We are working at this,” said the firm.
And CT Bolts’ turnover improved by 20% from $1.5 million to $1.8 million with profitability up 96% to $724k.
“This remains a niche business and an increased focus on the northern half of the country has produced extra revenues and profits for the company,” said management.
The company has declared a final dividend of $500 000.