ZIMBABWE-FOCUSED investment group, LonZim has seen turnover surge 90 percent in the year to August but the firm continues to hemorrhage cash posting a loss of $7.9 million over the same period.

In a statement accompanying results published on Friday the London-listed company announced that while overall revenues had grown on the back of an improving economy losses for the year topped $7.9 million against a profit of US$1.4 million the pervious year.

“Group turnover has grown 88 percent year on year demonstrating the start of the recovery for the economy. Costs and margins remain challenging with turnover at such low levels and will only return to a normal balance as turnover expands with the economic recovery.

“The loss for the year of $7.9 million (2009 - profit $1.4 million) is as expected given the current economic climate in Zimbabwe after charging amortisation of intangible assets of $2.8 million,” Lonzim said.

Established in December 2007 LonZim’s interests in Zimbabwe include the iconic Leapard Rock Hotel complex in Vumba where a US$1.8m refurbishment programme has just been completed.

The group also has a 60 percent interest in the Zimbabwe Stock Exchange-listed Celsys Limited as well as Paynet, Tradanet and the new airline Fly540 Zimbabwe.

“Fly540 has initiated a plan to commence operations into, and eventually from, Zimbabwe as and when the traffic volumes start to build and the airport at Harare re-establishes volume international traffic.

“Harare airport remains of long term strategic importance as one of the best infrastructure facilities in Southern Africa,” the company said.

Despite the huge loss recorded over the past year management remains upbeat about the group’s prospects going forward.

“The Company continues to undertake detailed due diligence on a range of potential acquisitions where it can identify real opportunities for growth in value in a normalised economic environment,” Geoffrey White, the chief executive, said.