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(TALKZIMBABWE) LonZim well-placed for recovery

LonZim well-placed for recovery
Posted by By Brett Mashingaidze at 24 May, at 17 : 59 PM Print

Zimbabwe-focused investment company LonZim said its five core businesses are well placed for economic recovery in the country after the firm revealed increase revenues and a reduced operating loss in its interim results.

During the six months to 28 February, LonZim’s revenues improved 14.4 per cent to £3.1 million while its operating loss reduced to £2.5 million. The company reported that its Leopard Rock Hotel had completed the refurbishment it has undergone since LonZim acquired it in April 2009.

Although occupancy rates at the hotel currently remain low generally, with occasionally short periods of full occupancy driven by specific events such as weddings and conferences, LonZim believes its refurbishment has made it ready to be an integral part of the rebuilding of the Zimbabwean tourist industry.

LonZim’s wholly-owned Paynet business continues to provide electronic funds transfers (EFT) systems to the majority of banks in Zimbabwe as well as microfinance through its Tradanet platform, the company reported.

Paynet saw an increase in EFT business during the period, while Tradanet saw a significant increase in the number of microfinance loans in the market and has benefited from increased confidence returning to the economy. Paynet is seeking increased access to capital to be able to meet the growing demand for loans via Tradanat.

Celsys – in which LonZim has a 60 per cent holding – has centred its operations around security and general printing, as well as the distribution and lease of ATMs and point of sale (POS) equipment. LonZim believes that printing remains an important industry sector where volumes will increase as the economy recovers.

LonZim’s Gardoserve chemicals blending and importation business, which it owns outright, is beginning to see growth as a result of the improving industrial and mining sectors of the economy.


ForgetMeNot Africa, in which LonZim has a 51 per cent holding, has successfully rolled out its FMNA platform for instant messaging and other message platforms with several networks across Africa.

In Zimbabwe the launch of FMNA with Econet has begun with encouraging uptake. LonZim added that initial results indicate this will be FMNA’s strongest market to date.

Elsewhere, there has been little further progress at LonZim’s development site at Beira in Mozambique nor at Sol Aviation (90 per cent-owned by LonZim), where the roll out of its Fly540 Zimbabwe regional airline operation remains on hold until the demand and market dynamics of operating in the Zimbabwean aviation market become clearer.

LonZim has withdrawn from the Zimbabwean pharmaceutical products market, where its Panafmed subsidiary had been operating.

“LonZim has seen progress during the period, and the economic situation in Zimbabwe continues to improve, albeit from a very low starting point.

“There is relative stability in the commercial environment that is allowing businesses to manage their operations in a normalised environment, a great improvement from the recent hyperinflationary economic conditions,” said David Lenigas, LonZim’s executive chairman.

After December’s share placing, which raised around £5 million with institutions, LonZim had cash of £2.6 million on its balance sheet at the end of February.

LonZim’s share price was up 4.2% at 25 pence at 8:15am.

Labels: LONZIM

posted by MrK @ 2:12 PM