Zeco Holdings Limited reported a ZWG2.95 million loss for the half year ended June 30, 2026, reversing a profit of ZWG3.17 million recorded in the same period last year, as administrative costs rose and competition from cheap imports forced the closure of some subsidiary operations.
The engineering group’s revenue increased to ZWG6.18 million from ZWG2.06 million in the prior comparative period, but administrative expenses climbed to ZWG8.59 million, contributing to the loss.
The company’s interim financial statements, published on October 2, show that total assets declined to ZWG154.37 million from ZWG158.89 million at the end of December 2025.
Total equity also fell to ZWG142.78 million from ZWG154.22 million, while current liabilities increased to ZWG5.69 million from ZWG2.04 million.
Cash and cash equivalents declined to ZWG152,824 at the end of June from ZWG348,985 at the beginning of the year.
The group also recorded a ZWG50,614 net cash outflow from operating activities, compared with an inflow of ZWG2.19 million in the same period last year.
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In its report, the company highlighted uncertainty over its ability to continue operating without additional funding.
Management noted that “material uncertainties” surrounding future operating results and cash flows “cast significant doubt upon the group’s ability to continue as a going concern without securing additional finance.”
The group attributed some of its operational challenges to competition from cheap imports, particularly from the East, which affected the sustainability of its Zimplastics (Private) Limited and Delward trading as ZECO operations. Both were classified as discontinued operations.
Despite the challenges, management expects modest growth through new markets and alternative revenue streams.
The group is exploring opportunities to rent out space at Crittall Hope and undertake major construction work at Dingani Investments.
The board also announced the appointment of C Frankis as the new chief executive officer.
No dividend was paid during the six-month period.
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