The directors of heavy engineering firm ZECO Holdings have told shareholders that they are unsure the company will survive going forward.
“The directors have not satisfied themselves with the group’s ability to continue operating as a going concern,” the group said in its half-year report to 30 June 2026.
Management concluded that its circumstances “represent a material uncertainty that casts significant doubt” on the group’s future.
The directors kept the going concern basis anyway, citing “anticipated improved operational prospects”.
Cash explains the concern.
The group held ZWG152,824 at the end of June, down from ZWG348,985 in December 2025.
Trade and other payables rose from ZWG2.04 million to ZWG5.69 million over the same period.
The company owes about 37 times what it holds.
Management lists four remedies.
“Additional revenue is now being generated from Crittall Hope renting out space,” the report said.
Construction at Dingani Investments is under way, and management says it will open new revenue streams once complete.
The group hires workers by project to limit staff costs, and it is applying for new tenders.
Two subsidiaries are already gone.
Zimplastics and Delward were closed after competition from cheap imports, mainly from the East. The report said the two “had become unsustainable with no prospects of recovery.”