Zimpapers recapitalisation nears completion

Zimpapers recapitalisation nears completion
Published: 27 June 2014
Zimbabwe's largest news media house Zimbabwe Newspapers (1980) Limited's re-capitalisation efforts are nearing full circle and the company expects an improved profitability in FY2014.

Group chief executive Justin Mutasa told the company's 86th AGM this afternoon that the "company is now almost fully capitalised".

Zimpapers commenced its re-capitalisation programme in FY2013 and expects to start yielding benefits from the process in the current financial year.

In an interview on the sidelines of the AGM, group finance director Adolf Majome said the new systems should be fully operational in the second half of the year.

"The three-pronged re-capitalisation programme which began last year has resulted in upgrades in the system side through the implementation of the 4C Plus, the newspaper printing press and the printing press for the commercial division. What remains now are downstream adjustments to complement what we have already put in place," he said.

Majome said the revitalisation of the commercial division will allow the company to recover a market that were being lost to players in the region, mainly South Africa.

In addition to the re-capitalisation, the group has been introducing a number of new products that will markedly change its capital structure.

Zimpapers has been moving to become a key player in broadcasting with the introduction of StarFM and the impending establishment of a new television station.

It has also diversified into digital with products such as BH24 and mobile news that have broadened the company's revenue streams. "With the new revenue streams we are expecting improved profitability and our targeted profit in the current financial year is $2 million," said Majome.

Meanwhile, the AGM saw the company's shareholders adopting financial statements and reports of the directors and auditors for the year ended December 31, 2013, and confirmation of the resignation of Dr Paul Chimedza, Dr Munyaradzi Kereke, Retired Brigadier Epmarcus Kanhanga, Chakanyuka Karase, Alexander Kanengoni and Joseph Mandizha.

These have been duly replaced by George Manyere, Terence Hussein, Felix Moyo, Rejoice Nharaunda, Karren Dube, Doreen Sibanda and Bishop Manhanga. Dr Charles Utete has been confirmed as the chairman of the company's board of directors.
- BH24
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