Diversified agro-industrial group Zimplow Holdings Limited (Zimplow) says it will reinvest in productive, strategically aligned areas of the business as it steps up efforts to return to profit.
Last Thursday, shareholders approved the disposal of Zimplow’s Dagenham property during an extraordinary general meeting. The asset will be sold for US$3,2 million.
The listed giant said funds from the transaction will be channelled towards bolstering liquidity, supporting working capital, and improving inventory cycles, while also being redirected into areas that generate real returns for the group.
Zimplow posted a US$2,16 million loss last year after being undermined by the 2023/2024 drought, which accounted for 96,6% of the group’s operational losses.
Recovery has remained sluggish. For the half-year ended June 30, 2025, the group reported a US$499 586 loss - an improvement of about 70% from the prior year.
“Our strategy going into 2026 is very clear. We are tightening our asset base, strengthening our balance sheet, and reinvesting only in productive, strategically aligned areas of the business,” group chief executive officer Willem Swan told Standardbusiness.
“This transaction supports that direction fully. We are unlocking value from a non-core asset and redirecting it into areas that strengthen Zimplow’s competitiveness and long term growth.”
A critical part of this strategy is the development of Zimplow’s long-planned one-stop shop.
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“We have been looking at it for probably the best part of three years. We have business units that are invested in agriculture, logistics, construction, and mining,” Swan explained.
“And for us being able to centralise those businesses ... will increase the throughput for the business itself.”He said accessibility constraints at the historical Dagenham Road base accelerated the shift.
Standardbusiness understands the group returned to profit in the third quarter, which ended September 30, 2025, following several strategic initiatives rolled out across its business units.
Key focus areas will include liquidity management, ensuring stock availability, and implementing risk-management measures to counter prevailing macroeconomic challenges.
Swan said Zimplow’s major capital outlay for the period will range between US$800 000 and US$900 000.
Standardbusiness understands the group is constructing state-of-the-art workshops for Scania and Trentyre Tyre, as well as new facilities in Msasa, Harare.
Swan said the firm has also commissioned a building to house the group’s original equipment manufacturers in the Msasa industrial estate.
He dismissed suggestions that the restrained capex signalled funding constraints.
“No, I think it’s internal cash generation. This business, over the past 15 years, when they have had excess cash, has invested in properties,” he said.
“So that was the store of value for us. Should things go well into the future, we will obviously invest in properties again, in strategic locations.”
As the group moves into 2026, Swan said disciplined investment, centralisation, and improved access will anchor the next phase of growth.
Revenue growth is expected from seasonal demand for tractors and implements, small-scale farmer spares, and equipment, supported by increasing demand for MF200 series tractors, generator containers, and tyres.
“The group will continue to focus on margin protection, cost containment, and debtor recovery in order to ensure that the group’s operations are profitable,” Zimplow said in its trading update last month.
It added that the continued rollout of effective product-support mechanisms, the one stop shop model, and digital transformation initiatives will drive progress toward the group’s strategic objectives for 2025.
Zimplow is therefore expected to prioritise unlocking tangible value from its investments, improving working capital efficiencies, and driving sustainable growth across all units in the current quarter and beyond.
