ZAS records slight drop in revenue

Tinashe Makichi Business Reporter
The Zimbabwe Agricultural Society recorded a slight decline in total revenue for the year to September 30, 2015 at $3,2 million from $3,3 million in the comparable year ago period.

The comprehensive income for the year showed a deficit of $486 822 while show income for the year was down by $34 000 from the income recorded by the end of the financial year 2014.

However, when adjusted for the August 2015 six day show, income for the period was up by $120 000 driven by higher daily collection rate on gate takings and an increase in income from show stand rentals.

“Qikpay was the ticketing partner and ZB bank did cash collections.

Pre-paid ticketing sales were slow. However, several improvements are planned to ease congestion at the gates and to maximise revenue,” said ZAS.

On segment performance, the 2015 Agri-produce exhibition was successful than the previous shows and for the first time, Matabeleland was represented in this segment.

There were 320 entries in 2015 compared 217 in 2014 which represents a 47 percent increase.

The livestock segment was outstanding during the period and there was good support and co-operation among all stakeholders.

On Home Industries, the total number of exhibitors was 789 in 2015 compared to 782 in 2014, representing a marginal increase.

“For the first time exhibitors from Chipinge and Mt Darwin participated and had quality exhibits of jam, small baskets and crocheted wool blankets.

However, many potential exhibitors could not participate because of the current economic hardships,” said ZAS.

The tobacco section was reactivated for the 2015 show after being in absence since 1997.

ZAS said there was a full fun-filled arena events programme throughout the six-day show.

“Going forward we will be committing more funds to improve assets in order to enhance the society’s income earning capacity,” said the Society.

ZAS said the main concern during the period has been the decline in events and amusement park business units’ income between 2014 and 2015.

The Society said 2015 estates income was slightly up by $4 000 while the August show contributed 58 percent of the total income for the year.

The events portfolio contributed 15 percent of total income while Estates rentals represented 25 percent of total income.

Occupancy at the estates is now at 47 percent from 44 percent in 2014.

Amusement park contribution only represented one percent of total income.

The Society said a centralised procurement system was implemented during the period to enhance efficiency of the procurement process.

A treasury management system was also put in place to effectively manage the Society’s banking transactions, money market investments, cashflows and risk control associated with treasury activities.

ZAS said its investment in equities on the Zimbabwe Stock Exchange is viewed as a long term investment and was valued at $150 342 at year end.

Capital expenditure for the year amounted to $259 974.

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