Zimre forecasts $150m turnover

Published: 02 July 2014

Zimre Holdings Limited is forecasting a turnover of about $150 million by the end of this year as the company targets increased earnings from the disposal of non-core and non-performing local and external assets, a company official said.

ZHL is owned 43 percent by the Government and has a 33 percent interest in NicozDiamond. The group operates principally in southern Africa with offices in Botswana, Malawi, Mozambique, South Africa, Zambia and Zimbabwe.

In an interview Zimre Holdings chairman Mr Benjamin Khumalo said the group is confident of a turnaround despite prevailing economic challenges.

"Despite the prevailing harsh economic environment the company hopes to archive an annual turnover of $150 million and to this end, investments within the group that are not considered core are being disposed of with resultant proceeds being injected into core operations.

"The capital raising exercise is meant to enhance liquidity within the group operations and increase group underwriting capacity and once an appropriate partner is identified members would be notified," said Mr Khumalo.

Zimre Holdings chief executive Mr Albert Nduna at the company's AGM added that capital raising initiatives coupled with some internal re-organisation for the group will see value being created for shareholders in the short term.

Despite the challenges in the operating environment the group performed reasonably well and for the three months to 31 March 2014, the group recorded a gross premium of $24 million which was however 9 percent below same period last year and that was within expectations.

Gross premium for the regional businesses was in line with budget and was ahead of last year.

Local reinsurance business was below last year as the group pursued its strategy of writing collectible and profitable business.

Operating and administration expenses were nine percent below both budget and the prior year.
- The Herald

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