OK Zimbabwe crowned top company

Published: 07 June 2018

RETAIL chain OK Zimbabwe was crowned this year's best performing company on the Zimbabwe Stock Exchange (ZSE) at The Financial Gazette's Top Companies Survey, which is bankrolled by financial services giant Old Mutual Zimbabwe.

OK Zimbabwe, which has 62 outlets operated free of debt during the year ended March 2018, had record-breaking revenues that boosted company coffers.

Internally generated funds were said to be adequate for working capital and expenditure requirements.

Capital expenditure for the year was $15,5 million, up from $10,9 million in prior year.

Revenue grew 23,4 percent to $582,9 million, a record for the company.

A profit after tax of $16,6 million represented a 174,6 percent increase from the previous period.

Beverage processor Delta Corporation was the first runner-up at the Top Companies Survey Awards.

Last year the company was crowned the best performing company on the ZSE.

Padenga Holdings, which produces and sells crocodile skins and meat, was crowned second runner-up for the second year running.

The winner and runner-up recipients excelled in the areas of earnings quality, size, efficiency and financial health.

They also demonstrated outstanding qualitative attributes in the areas of corporate governance, environmental sustainability, disclosure and investor relations as well as social responsibility programmes.

Ecobank, a pan-African banking conglomerate with operations in 36 countries, was voted the best bank with Standard Chartered Bank Zimbabwe taking the runner-up position.

Standard Chartered Bank, a multinational banking and financial services company, was crowned the best bank last year.

Nyaradzo Life Assurance was crowned the Best Life Assurer. Zimnat Life Assurance Company was the runner-up.

The Life Assurance Award recognises the best performing life assurance company, which excelled in five weighted categories within the life assurance sector. This is capital adequacy, operating performance, liquidity, competitiveness and size over a three-year period.

Zimnat General Insurance was voted the best short term insurer, while FBC Insurance was the runner-up.

Delta Corporation won the Disclosure and Investor Relations Award.

This award acknowledges a company that makes disclosures, whether beneficial or detrimental to the company, as well as reasonable levels of engagement with all stakeholders, particularly the investment community.

The disclosure of information should be made in a timely manner and in simplified financial language.

SeedCo won the Special Mention Award, an honour that goes to a company that has demonstrated progress in the creation of shareholder value.

The winner of this year's award was recognised for forging partnerships that paid off and seeking presence and competitiveness on a global scale, in line with the theme of this year's Top Companies Survey: Positioning for global capital.

Padenga Holdings Limited won the Best Tangible Investor Returns Award.

This award recognises, quantitatively, the best performing company in terms of return to investors or shareholders.

The main sources of return for investing on the stock market are capital appreciation and dividend yield.

This award recognises consistency and incremental growth of the company's share price over a three year period, sequentially weighting the returns, with 2017 carrying the greatest weight.

Speaking at the event, chairman of the panel of judges and analysts, Welcome Mavingire, said this year's Top Companies Survey comes amid renewed optimism and hope for a sustainable recovery in Zimbabwe's economy.

He said this was a marked departure from prior years when judges were primarily focused on which companies were better placed to survive the "toxic economic environment."

"Generally, the judges consider a top company as one that should be able to not only withstand a difficult economic environment but also prosper during an economic recovery phase," Mavingire said.

"And this speaks to not only its business model but also management capabilities, agility and general governance issues around the company," said.

Guest of honour, Kevin Wakeford said the time for economic development in Zimbabwe was now.

"Zimbabwe has been a net exporter of enterprising educated individuals who are contributing growth in other countries. They are important for development of this country going forward. My view is you can do it, you just need to get the basics right again," he said.

The Financial Gazette's managing director, Pilate Machadu, said the aim of the survey is to promote good corporate governance practices, ethical conduct and corporate social responsibility.
- Fin Gaz

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