Zeco Holdings Limited
Zeco Holdings Limited is one of the many Zimbabwean companies listed on he Zimbabwe Stock Exchange. The birth of the company was attributed to the work on a local celebrated businessman cum politician Phillip Chiyangwa. The Harare based engineering company was established in 2007.
Nature of Business
Zeco Holdings, through its subsidiaries, builds rail wagons and locomotives for utilities in Zambia, Tanzania, Mozambique, Ethiopia, and Kenya. It also manufactures roller shutters, lift up garage doors, steel windows, door frames, burglar bars, and filling cabinets, as well as agricultural implements. Zeco Holdings was formerly known as RESCO.
Expansion of ZECO
In May 2008, Zeco acquired all the assets held by Corbett Holdings (Private) Limited (“Corbett Holdings”) and its operating subsidiaries, namely Electrical and Mechanical Suppliers and Importers (Private) Limited, Halgor Estate (Private) Limited, FaiT Lux (Private) Limited and Zimplastic (Private) Limited (“Zimplastic”). Zeco eventually began trading on the Zimbabwe Stock Exchange in February 2008.
The listing of Zeco incorporated a recapitalization involving the issue of ordinary shares to public investors in order to raise Z$20.2 million required to finance the working capital requirements for its operating subsidiaries. Although the issue was fully subscribed, the value of the amount raised was severely eroded by the hyper inflationary conditions obtaining then and the large part of the amount raised was invested in securities pursuant to a hedging strategy adopted by the Company.
Zeco has been the talk in the media due to its poor performance. The group’s losses widened to $4,7 million in the year to December 2013 from $2,5 million incurred in prior year. During the period under review, revenue declined by 60 percent to $600 000 from $1,5 million. At the end of the 2012 business year, the company failed to furnish its shareholders with an annual financial report as required by the Zimbabwe Stock Exchange.