Most listed companies reinvest first half profits on capital projects

By ZBC Reporter

Most companies listed on the Zimbabwe Stock Exchange have decided to take advantage of current growth opportunities by reinvesting their half year profits on new income generating projects.

Audited half year financial statements for listed firms indicate resilience against COVID-19 induced shocks after the entities posted impressive results.

The statements show that most firms aided by funding from the foreign exchange auction system managed to commission new plants, refurbish equipment, import machinery and improve sales.

Institute of Chartered Accountants of Zimbabwe (ICAZ) Technical Manager, Mr Owen Mavengere says most financial statements are above market expectation and outlined how most of the firms are reinvesting profits.

The trajectory has been mixed but for most of the financial counters they have really declared dividends to their investors or shareholders while those firms in the manufacturing, transport, hospitality, retail and distribution, agro-processing have mainly announced plans to reinvest the profits,he said.

An investment analyst, Mr Makanaka Shambare spoke on the importance of ensuring that companies maintain the current growth trajectory.

It has not been all that rosy for the firms as they also suffered a knock from the effects of the COVID-19 but taking into account the sudden COVID-19 challenges,said Shambare.

The half year audited financial statements also show that listed companies are still committed to continue operating while focusing on exports, re-industrialisation, revival of business units and effective cost management policies.

The post Most listed companies reinvest first half profits on capital projects appeared first on ZBC NEWS.

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