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Business Editor
THE country’s dominant multi-media group, Zimpapers (1980) Limited, is poised for profitability on the wake of the massive recapitalisation programme at its branches countrywide as it moves to consolidate market leadership.While the company’s revenue remained suppressed at $21 million in the first half of the year due to the challenging economic environment, prospects for increased growth are high.

The company posted a $1.4 million loss stemming from finance costs of recapitalisation loans of more than $6 million and the underperforming commercial printing and broadcasting divisions during the half year ended June 30.

The group posted a six percent decline in revenue to $21 million during the period under review compared to $22.4 million during the same period last year.

Gross profit marginally plunged to $16.2 million from $16.5 million last year due to efficient procurement of raw materials and efficiencies in the production cycles brought about by the on-going recapitalisation.

Loss before tax stood at $1.9 million due to the slump in revenue while overheads remained relatively fixed.

“Both management and the board are seized with the issue of streamlining its cost structures for them to be commensurate with the revenues being generated,” group board chair Dr Charles Utete said in a statement accompanying the financials.

“The company had to use short-term borrowings which are expensive due to absence of long term funds on the market and the necessity to recapitalise as the company was operating on near obsolete equipment, which was becoming economically unsustainable.”

He said the full benefits of recapitalisation, which is nearing completion, had started taking effect especially in the expected production efficiencies and quality.

“The board and management remain confident about the future performance of the company especially on the backdrop of the recapitalisation that it undertook and the initiatives being undertaken at national level under pinned by the Zim-Asset economic blueprint,” said Dr Utete.

Under its massive recapitalisation programme Zimpapers bought a new Orient X-cell printing press that is now fully operational.

The company has also successfully commissioned a refurbished commercial printing machine purchased from Italy for its commercial printing division, Natprint.

The commissioning of the machine has increased Natprint’s capacity threshold at higher levels of quality and efficiency.

The company has also finished installation of its new production and accounting system, 4Cplus, a robust and watertight system for improved production and reporting processes by providing real-time information flow and availability.

Cognisant of the migration of the growing number of readers from print to digital media, the company is developing its digital platforms that are compatible with mobile devices such as smart phones, tablets and android devices.

The group has introduced on-line advertising and platforms that suit various economic sectors including the informal sector.

“The company’s BH24 digital business newsletter has been a tremendous hit on the market providing instant and update business news on e-mail and website,” said Dr Utete.

He said digital platforms have so far contributed four percent of the company’s total revenue.

Despite increased competition in the newspaper industry Zimpapers’ titles such as the Chronicle, Herald, Sunday Mail, B-Metro and H-Metro continue to maintain leadership in their respective markets countrywide as evidenced by independent surveys on readership and circulation figures.

Zimpapers is a multi-media conglomerate that also runs Sunday News, Manica Post, Umthunywa, Kwayedza, Bridal Magazine, and Zimtravel, the regional flagship Southern Times, Star FM and Mobile News.