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Zimplow volumes declined across most of its SBUs but the group managed to report a small profit after accounting for gains accrued after they disposed on Puzey & Payne and Tassburg. Chief executive Mr Zondi Kumwenda told analysts on Wednesday that demand in the year to December was severely constrained with liquidity constraints adding to business woes.

As a result animal drawn implents were down 15 percent from prior year with the main reduction being recorded on export volumes. Kumwenda said local volumes had shown a strong recovery during October but tailed off quite dramatically during the latter parts of November and the whole of December.

Regional sales decreased but the reduction was tempered by a 43 percent volume increase in the South African subsidiary.
Spares had performed well, gaining 5 percent.

“Had it not been for the cash shortages it could have been a spares season,” said Mr Kumwenda.
Volumes overall were affected by reduced donor activity after the elections. That together with the low disposable income and competition from the East had affected performance.

On the mechanical business tractor sales were 31 percent lower than the previous year.
“We sold a combined harvester while gensets were down 52 percent. Motorbikes, which are not core to the business were 70 percent down.”

“Service hours were down 41 percent as the tight liquidity positions experienced by many farmers reduced their ability to have their equipment serviced. Parts turnover was down 14 percent to US$3,26 million from US$3,8 million.

“Again the effect of low turnover was felt together with the poor land preparations.”
Farmec Implements turnover was down 6 percent to US$2,12 million from US$2,27 million.

Northmec was down 41 percent. Mr Kumwenda said implements were also down 40 percent.
Service hours were up 10 percent but parts turnover was 6 percent lower.  — FinX.