HARARE – ZECO Holdings Limited has reported a strong topline performance for the half year ended 30 June 2026 with revenue more than trebling, though the group swung to a loss on the back of rising administration and operating costs.
The steel fabrication and installation group, which also manufactures window and door frames, recorded revenues of ZWG6,181,032 for the six months to 30 June 2026, up from ZWG2,062,125 in the same period last year. Other income, mainly from rental, amounted to ZWG3,238,664 compared to ZWG6,058,865 last year.
Gross profit improved to ZWG2,403,762 from ZWG540,137, after cost of sales of ZWG3,777,270. However, administration costs more than doubled to ZWG8,594,044 from ZWG3,433,409, driven by employee costs of ZWG3.8 million and administration expenses of ZWG4.6 million.
The group reported a loss from continuing operations of ZWG2,951,618 for the period, against a profit of ZWG3,165,593 in H1 2025. Basic and diluted loss per share was 0.01 cents compared to earnings of 0.01 cents last year.
The balance sheet remained largely stable, with total assets at ZWG154.37 million as at 30 June 2026 compared to ZWG158.89 million at 31 December 2025. Non-current assets were ZWG77.2 million, anchored by property, plant and equipment of ZWG75.9 million. Current assets were ZWG606,877 while assets of discontinued operations stood at ZWG76.5 million. Total equity closed at ZWG142.7 million from ZWG154.2 million at year-end.
Cash and cash equivalents declined to ZWG152,824 from ZWG348,985 at the beginning of the year, with net cash outflows from operations of ZWG50,614.
Operationally, the environment was characterised by stability due to tight monetary policy and a stable ZWG against the US Dollar. The Bank Policy Rate was maintained at 35% and later reduced to 30% in mid-June 2026, which enhanced business confidence.
During the period, Mr. C Frankis was appointed Chief Executive Officer of the company. No dividend was declared.
On sustainability, the company said it remains committed to internal policies and international standards through training and policy reviews to ensure long-term stakeholder value.
On outlook, the company expects tight monetary conditions to persist with a stable ZWG currency resulting in moderate economic growth, though potential disruptions from an expected El Nino-induced drought are anticipated. The company expects modest business growth from new markets, additional rental income from Crittall Hope, ongoing construction at Dingani Investments and aggressive tendering for new projects.
Discontinued operations relating to Zimplastics (Private) Limited and Delward T/A ZECO (Private) Limited remained non-operational due to competition from cheap imports.
