The VFEX-listed engineering group has appointed a finance executive with restructuring and treasury experience as its return to profitability shifts attention towards cash generation, working-capital efficiency and financial resilience.

• Zimplow appoints Itai Dzapasi as Group CFO and Company Secretary amid its earnings recovery.
• Nine-month pre-tax profit reached US$891,063, reversing a US$650,998 loss a year earlier.
• Agriculture still contributes 54% of revenue as drought risks threaten the next farming season.

Harare - Zimplow Holdings has appointed chartered accountant Itai Dzapasi as Group Chief Financial Officer, placing an executive with 19 years of experience in treasury, restructuring and financial management at the centre of a business emerging from two difficult financial years. The appointment comes as the VFEX-listed engineering group returns to profitability through stronger agricultural equipment sales, export expansion and growing aftermarket activities, with its next challenge lying in sustaining earnings and protecting liquidity against renewed agricultural and industrial demand risks.

Dzapasi's appointment took effect on 1 September 2026, according to a board notice dated 21 October. He also assumes responsibility as Group Company Secretary following the departure of Sharon Manangazira on 30 September. The combination gives him responsibility for the group's finance function and company secretarial duties at a time when Zimplow is managing an operating recovery and assessing opportunities to broaden its commercial portfolio.

His arrival follows a significant improvement in Zimplow's financial performance. For the nine months ended September 2026, the group reported profit before tax of US$891,063 against a loss of US$650,998 in the comparable period, representing a US$1.54 million earnings turnaround. Approximately 71% of the reported profit was generated in the third quarter, indicating that the recovery gained momentum as the year progressed.

The improvement follows a prolonged restructuring period. Zimplow recorded a US$3.44 million pre-tax loss in 2024 as drought, weak agricultural demand and liquidity constraints affected its operations. The loss narrowed to US$492,180 in 2025, supported by stronger agricultural equipment sales and cost reductions. Profitability returned during the first quarter of 2026, with subsequent results showing further improvements in margins and operating performance.

The group's nine-month results provide a clearer picture of the changes supporting that recovery. Farmec and Mealie Brand generated combined revenue of US$13.54 million, representing approximately 54.4% of group turnover. Their contribution shows that agriculture remains Zimplow's largest operating exposure, even as the business develops new revenue sources in mining, export markets and industrial equipment.

Mealie Brand has made progress in reducing its reliance on domestic agricultural demand. Export implement volumes exceeded local sales during the nine-month period, while the division generated US$459,843 from mining customers, a market it had not served in the corresponding period last year. The new mining business accounted for approximately 13.4% of divisional revenue, supporting a recovery from a US$43,347 pre-tax loss to a US$96,321 profit.

The expansion into mining and exports provides additional revenue opportunities, although Mealie Brand's approximately 2.8% pre-tax margin leaves limited room to absorb higher production costs or weaker demand. For the finance function, sustaining the improvement requires maintaining profitable product pricing, controlling inventory investment and protecting collections across markets with different payment terms and operating conditions.

Other divisions have begun contributing to the broader recovery. Trentyre increased revenue by approximately 30% to US$2.18 million, supported by mining-related demand, while Powermec returned to profitability as solar equipment and accessories sales expanded. Parts revenue across the group increased by approximately 31%, with service revenue rising 15%. These activities can support more recurring customer relationships and reduce dependence on the timing of major equipment purchases.

The operating changes increase the importance of treasury and working-capital management. Equipment distribution requires stock availability before sales can be completed, tying up cash in imported machinery, replacement parts and inventories. Extending credit to customers can improve sales volumes, but also creates receivables that must be collected before the next procurement cycle. Growth therefore needs to be supported by adequate financing and disciplined inventory management.

Zimplow has already demonstrated the importance of this relationship. During the five months to May 2026, the group reported US$1.35 million in internally generated cash, alongside improved profitability and stronger inventory availability. Maintaining that cash generation will become more demanding as export volumes grow and the group enters business segments with different procurement and payment cycles.

Dzapasi's professional background aligns with several of these requirements. Before joining Zimplow, he served as Finance and Operations Director at CareNet Africa Limited, the healthcare business of the Masawara Group. He previously worked as Financial Controller at Minerva Risk Advisors, formerly AON Zimbabwe, after qualifying as a chartered accountant at Deloitte & Touche Zimbabwe.

His experience spans financial reporting, performance management, treasury, working capital, organisational restructuring, operations management, taxation and corporate finance. He holds accounting qualifications from the University of Zimbabwe and the University of South Africa, alongside an MBA in Strategic Leadership from the University of Zimbabwe. He is a member of the Institute of Chartered Accountants of Zimbabwe and the Public Accountants and Auditors Board.

The appointment also comes during a broader leadership transition at Zimplow. Former Group Chief Executive Willem Swan stepped down in May 2026, with Group Commercial Director Charles Chaibva assuming the chief executive role in an acting capacity. The new CFO will therefore work alongside an interim group leader as the business consolidates the operational improvements achieved during the year.

The next agricultural season introduces an immediate source of risk. Forecast drought conditions could weaken farmer incomes and equipment purchasing capacity, particularly in markets where demand depends on crop performance. Farmec and Mealie Brand's substantial contribution to group turnover leaves Zimplow exposed to that cycle, despite progress in mining, exports and industrial products.

The company's emerging diversification strategy can moderate some of this exposure, but each additional market introduces its own financing and execution requirements. Export growth increases the importance of payment security and inventory planning, while mining and industrial customers may require different credit arrangements and product support. Stronger revenue diversification will only translate into sustainable profitability if cash conversion and operating margins improve alongside sales.

The group has also previously disclosed discussions concerning a potential acquisition, adding a further dimension to financial management. No transaction terms have been established in the available disclosures, but any eventual acquisition would need to be assessed against the group's liquidity, financing capacity and existing investment requirements. Funding structure and achievable operating benefits would be central to determining its contribution to Zimplow's performance.

Dzapasi assumes the finance portfolio after Zimplow has demonstrated that its businesses can return to profitability through improved product availability, broader markets and stronger cost control. The responsibility now extends to embedding those improvements within the financial structure of the group.

The more useful measures over the coming reporting periods will be operating cash generation, inventory turnover, receivables collection, divisional margins and the durability of earnings across the agricultural cycle. Zimplow has recovered from substantial losses and restored profitability. The value of its next phase will depend on how much of that recovery is retained as cash and converted into a stronger, more resilient business.

- Equity Axis News