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have sprung the biggest surprises yet.
Given the problems in the manufacturing sector and low disposable incomes, the market was expecting a dull performance from Edgars.
However, the clothing retailer put up a solid performance that saw it posting a commendable US$1,5 million in profits on the back of improved festive season sales.
Kingdom Financial Holdings Limited on the other hand shook off the effects of negative publicity, generated from shareholder squabbles, that had weighed the brand for the past few months to post US$5 million in profits.
On the downside, Afre who are releasing their financials today issued a loss warning statement that earnings would be lower compared to the previous year.
This is an indicator that some companies are still struggling in the post dollarisation era as liquidity challenges persist.
Zimre associate companies, NicozDiamond, Fidelity Life Assurance and ZPI, property also released their results last week.
From the set of results it shows that the operating environment has been fairly challenging for the insurance industry as insurance cover largely remained a grudge purchase for both individual and corporate clients.
In some instance where clients are willing to take up insurance, the prevailing liquidity problems have constrained their ability to pay resulting in some collection challenges.
Despite these challenges, NicozDiamond managed to post some significant growth in revenue with gross premium written growing 53 percent last year.
The company recorded an operating loss though the growth in top line was good, the related growth in claims and expenses was much higher, leading to the misalignment.
Management said efforts to reduce cost structures are being witnessed as the company embarked on a retrenchment exercise late last year.
In a bid to achieve stability and growth as well as ensuring adequate liquidity to meet its obligations in the investments, NicozDiamond has realigned its portfolio and increased exposure in less volatile asset classes. This includes reversing losses on quoted equities recorded in the prior year.
Fidelity Life also posted good results with incoming premium rising 116 percent to US$7,7 million.
The group’s incurred benefits and claims stood at US$823 200 and operating and administrative expenses amounted to US$4,2 million resulting in it posting US$2,6 million underwriting surplus.
During the period under review investment income amounted to US$623 898 while a US$500 000 devaluation of the group’s investment in Genesis investment coupled with net income from non-insurance business of US$283 695 saw the group posting a profit before tax of US$3 million.
Income tax for the period was US$58 365 and the group also incurred a loss of US$313 463 from the discontinued Fidelity Life Zambia operation, which was placed under liquidation in September last year, to leave the group’s profit for the period at US$2,7 million.
Out of the profits US$994 440 was ceded to the owners of the company who were rewarded with a US0,2295c per share dividend.
During the period under review, Fidelity achieved premium income of US$4,8 million against claims and expenses of US$3,3 million to post a profit after tax of US$1,5 million while their Malawi operation Vanguard Life Assurance reported a profit before tax of US$933 000.
Profit for the year from the funeral assurance business stood at US$211 486 and management forecast continued growth in the unit.
The group’s property company, ZPI’s revenue was 47 percent to US$3,1 million buoyed by significant project sales while property portfolio rentals standing at US$2,5 million.
Property portfolio achieved rental collections of 82 percent and average yields of 7,8 percent. Voids over the period rose by 42 percent to 9,96 percent.
The portfolio’s average rental rates per square meter stood at US$6,67.
During the period under review building operating and services costs rose between 25 and 30 percent while management sees the rising service charge and interim power and water supplies as the major threat to business operations.
The 136 stand Parklands Project in Bulawayo, which was completed in June 2009, has since seen 40 stands being sold to date recovering US$507 000.
Twenty-six of the stands were sold last year.
The project is expected to recover a total of US$1,3 million after all stands are disposed.
The group is expecting to recover US$6 million from phase one of the Rhodhene extension project in Masvingo, which commenced last year and is expected to cost US$4,1 million on completion.
In addition it expects to get a slice of a number of lines of credit that have been announced and those that would also be directed towards the property sector.
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