TRACTIVE Power Holdings says operations have taken a hit from concern over next year’s elections although revenues over the last quarter improved 8 percent compared to the same period last year.
Group chief executive, Zondi Kumwenda told the company’s annual general meeting this week that although revenues were up, boosted mainly by the Barzem and Farmerc division, profit after tax had dipped 10 percent due to restructuring costs.
Kumwenda said overall sales however took a hit from anxiety over elections expected next year with most customers opting to defer capital expenditure to the post-election period.
Zimbabwe is expected to hold new elections in March next year to replace the fractious coalition government facilitated by the regional SADC grouping after violent polls in 2008.
Although both President Robert Mugabe and Prime Minister Morgan Tsvangirai have warned supporters to desist from violence, fears remain that the elections could turn out to be as bloody as the 2008 poll.
Meanwhile, Kumwenda also said poor liquidity levels in the economy have also resulted in customers delaying settlement of their accounts, a problem that has inhibited sales and restocking programmes.
Motor vehicle sales at Puzey & Payne were 12 percent down, with sales of Toyota units subdued due to liquidity constraints and limited asset-based financing facilities.
Tractor sales at Northmec were 2,3 times up on the previous year, boosted by product availability on the back of support from our joint-venture partners, Northmec South Africa
In addition sales of earthmoving machines, lift-trucks and generators at Barzem were 7 percent down on last year with the lift-truck volumes suffering from stiff price competition in the market.
The firm is set to delist from the Zimbabwe Stock Exchange (ZSE) to be consolidated into the Zimplow group.
Zimplow acquired 57,21 percent of TPH from the Reserve Bank of Zimbabwe’s Finance Trust of Zimbabwe.