Zeco returns to profit on revenue surge

Published: 2 hours ago

ENGINEERING firm Zeco Holdings Limited has posted a profit after tax of ZiG3.16 million for the half-year ended June 30, 2025, reversing a loss of ZiG1.65 million during the same period last year. The turnaround was driven by a near 200% increase in revenue.

According to a statement accompanying its half-year report, Zeco chairman Benjamin Rafemoyo said the group anticipated continued positive growth in the sector amid tight monetary conditions and a stable ZiG currency. He noted that the operating environment remains subdued but highlighted signs of recovery in the mining sector.

The group recorded revenues of ZiG2.06 million for the six months ended June 30, 2025, compared to ZiG689 591 during the same period in 2024. Other income from rentals contributed ZiG6.06 million, helping to lift the group to a profit of ZiG3.17 million. Total assets stood at ZiG85.77 million as of June 30, 2025.

Despite the profit, Zeco's liquidity remains a concern. The firm reported having ZiG0.72 for every ZiG of short-term debt, a decline from ZiG0.76 recorded at the end of 2024, leaving the company in an illiquid position.

Zeco highlighted key initiatives supporting its financial stability, including revenue from rental operations at Crittal Hope, major construction work at Dingani Investments, and hiring staff in line with project needs to control costs. The group is also actively pursuing new tenders to boost revenue.

The directors expressed confidence in the group's ability to continue as a going concern, citing anticipated operational improvements. However, they acknowledged that material uncertainties over future results and cash flows remain.

"While management has put in place measures to preserve cash and secure additional finance, these circumstances create material uncertainties over future operating results and cash flows. Nevertheless, we have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future," Zeco said.
- newsday

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