Zimplow faces debt collection challenges

Zimplow faces debt collection challenges
Published: 05 September 2013
Zimplow Holdings Limited Group Chief Executive Officer, Zondi Kumwenda, told an analyst briefing yesterday that Zimplow is experiencing hardships in debt collection and the bulk of their debtors are seated with Farmec and Barzem.
 
"The total of the debtors is about $12 millionn and of which about $6 million of that number is over 90 days and the remainder is for lesser period.
 
"It has been extremely difficult to collect debts" he said.
 
He further noted that there has been a very low activity especially starting from April because of the tight liquidity conditions.
 
"We actually changed the model for Farmec; it was really buy-on-cash-sell-on-credit and collecting debtors was a problem and consequently that affected the volumes. This time around, we would rather keep our stock and cash rather than sell and not be able to collect," he noted.

Commenting on elections, Kumwenda said elections presents both opportunities and risks, and the key is to find the balance.
 
"We remain positive that the new government will come up with sound economic policies that will favour agriculture, mining and infrastructure.
 
"The country is still far from rehabilitating itself on infrastructure mining and agriculture, this presents a medium term opportunity for the group," he added.
 
Kumwenda noted that a lot depends on the outcome of the rain season and improvement in the liquidity position of the economy.
 
Giving the outlook, he said the group expect a reduction in the level of borrowings by December 2013 and they have already started working on that.

- businessdaily
Tags: Zimplow,

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