AGRICULTURAL concern CFI Holdings is still in breach of key Zimbabwe Stock Exchange (ZSE) listing requirements, its auditors have warned, after failing to appoint substantive top executives and to regularise its free-float position ahead of an October 2026 compliance deadline.
CFI’s shares were suspended from trading in 2018 due to persistent non-compliance, before the ZSE lifted the suspension on October 11, 2021, granting the group a five-year moratorium to address governance and structural shortcomings.
However, in its financial statements for the year ended September 30, 2025, Baker Tilly Chartered Accountants Zimbabwe noted that the company had yet to fully meet the conditions set by the bourse.
“Notwithstanding the lifting of the suspension by the ZSE, CFI Holdings Limited remains non-compliant with regards listing requirements around free float threshold, appointment of a substantive chief executive officer and financial director,” the auditors stated.
Under ZSE rules, at least 30% of a listed company’s shares must be held by the public to ensure adequate liquidity and price discovery. CFI is below this threshold.
The audit caution comes even as the group returned to profitability during the period under review.
CFI reported a profit after tax of ZiG175,83 million (US$6,59 million), a sharp turnaround from a loss of ZiG995,74 million (US$40,01 million) recorded in 2024.
The swing was largely driven by unrealised foreign exchange gains of ZiG441,2 million (US$16,55 million) on foreign-currency denominated loans, underscoring the continued sensitivity of earnings to currency movements.
Revenue declined 5,46% to ZiG2,72 billion (US$102,08 million), reflecting pressure on volumes and pricing in a challenging operating environment.
During the year, the group invested ZiG84,79 million (US$3,18 million) in property, plant and equipment, with capital expenditure directed towards Glenara Estates, Victoria Foods and hatchery operations.
CFI said it remains focused on sharp procurement strategies and will prioritise continued investments in its milling operations to defend margins.
“Your board and management also remain cognisant of the need for proactive strategies in a highly competitive trading environment, especially in view of the growing informal sector,” it said.
Over the longer term, the group plans to venture into low-cost housing development in Harare South, signalling a gradual diversification beyond its core agricultural and agro-processing businesses.
From a balance-sheet perspective, CFI ended the year with ZiG1,28 for every ZiG1 of short-term liabilities, indicating adequate liquidity, while total assets stood at ZiG2,61 billion (US$98,15 million).