On behalf of a large Singaporean investor INVESCI executed the takeover of a controlling stake in Zimplow Holdings Limited. INVESCI runs this private equity investment as the General Partner. Zimplow has one of the strongest gearings to mining & agriculture on the ZSE & includes distinguished brands such as Caterpillar, Massey Ferguson & Perkins.
INVESCI took immediate action in restructuring the Board & re-establishing a normal corporate governance structure while making key necessary senior management changes.
Materially improved the systems & internal control environment.
Early emphasis on cash generation (debtors & inventory).
Borrowings are down $9.43m, with gearing down to 10% from 49% from date of acquiring control (as at 31 December 2016).
Strategically allowed Barloworld to increase their stake in Barzem (the Caterpillar dealership).
Group restructuring, reduced headcount and closed unprofitable branches.
Disposed of non-core unproductive assets & deployed proceeds to working capital & debt retirement.
Secured distributorship rights on longer terms.
Factory efficiency and overhead control.
Zimplow posted a profit of $3,449,854 after making consecutive losses over the previous 5 years: