Engineering concern, Zeco Holdings' woes persisted during the first half of 2020 ended June 30 after posting a loss of ZWL$$2.766 million due to increased production costs stemming from the hyper-inflationary environment.
In September, the Group announced that its total current liabilities (ZWL$6,347 582) for the full year 2019 exceeded total current assets amounting to ZWL$ 1,863 408 presenting a precarious financial position.
However due to the worsening operating environment, the group recorded a loss position in first half of 2020 of ZWL$ 2.766 million (Inflation adjusted $7.260m) despite cost containment efforts.
Revenues were ZWL$$2.77 million (inflation adjusted $3.25m).
"The inflationary operating environment persisted in the first half of the year and continued driving up the cost of production and eroded profitability," said the Group independent chair, Ben Rafemoyo.
Non-current assets as at 30 June 2020 amounted to ZWL$$228.657 million (Inflation adjusted $599.697 m).
Zeco specializes in steel fabrication and installation as well as the manufacturing of plastic components and distribution of electric motors.
Since then, the company has struggled to sustain its operations given the deteriorating economic environment.
Earlier this year, the Group announced that it was in talks with an Indonesian investor, Inka Limited, over a strategic deal that would see the recapitalization of the company and improve its production but progress on this deal has not yet been established.