Several companies are shelving the allocation of profits to shareholders for the year ending December 2016 citing the need to preserve capital in light of macro-economic challenges.
The distribution of money to shareholders from profits recorded by companies in 2016 is being done on a limited scale as firms seek to expand.
Recently released full year audited company financial results seen by the ZBC News show that most industries have notified their investors of the need to preserve profits with a senior partner at Grant Thorntorn Chartered Accountants Mr Tinashe Mawere saying the intention is aimed at sustaining future operations.
“Indeed it is a cause of concern but that may be due to the tough operating environment,” said Mr Mawere.
An economist Mr Zack Murerwa says the withholding of dividends might benefit shareholders in the future through increased allocations of money from profits.
“What more can you expect in light of the latest trends where the tough operating climate is posing a threat to viability,” Murerwa said.
With the banking industry leading in terms of profits, a public auditor, Mr Farai Chibisa, says some industries are retaining funds for raw materials and buying new machinery.
“Some of these funds are being reserved for future operations in light of the tough macro-economic climate that has made it difficult to plan,” said Mr Chibisa.
Despite the challenging macro-economic climate, most of the publicly listed companies financial results show a steady improvement in profits for the full year ending December 31 2016.