Masimba applauds Government…Group has firm order book valued at US$104 million

Masimba Holdings Limited, says it has an evenly balanced order book worth US$104 million from the private and public sectors and is spread over energy, housing, buildings, roads, mining and water infrastructure.

The listed firm heaped praise on Government’s continued investment in infrastructure development, a vital key enabler to economic development.

Added to that, the group’s chairman, Mr Gregory Sebborn in a statement accompanying financials for the year ending December 2022 said the current state of infrastructure in the country presents opportunities for the firm as evidenced by a long project pipeline and increased tendering activities.

However, he said unlocking these opportunities is dependent on the continued stability of the economy.

“In this regard, we implore the authorities to continue pursuing a balanced and sustainable fiscal policy,” he said.

Mr Sebborn said the group has a firm order book valued at US$104 million as at the reporting date, with tenures of between six to eighteen months.

“The order book, which is evenly balanced between private and public sectors, is spread over energy, housing, buildings, roads, mining and water infrastructure.

“We applaud the Government’s continued investment in infrastructure development, being the key enabler to economic development.”

In order to support infrastructure development trends in 2023, Finance and Economic Development Minister, Professor Mthuli Ncube in the 2023 national budget set aside $1,1 trillion support towards the 2023 development budget as it continues to prioritise infrastructure development which is key to unlocking sustainable economic growth and development.

Professor Mthuli Ncube

Government is however, concerned with malpractices in costing of projects and programmes which in some instances have been marred with future pricing and exorbitant pricing aimed at profiteering which has negatively affected the macroeconomic fundamentals.

These practices saw the Government in August 2022 taking a decision to suspend payments to contractors, Government agencies and departments which it accused of active participation in the deteriorating exchange rate.

Thirteen contractors were blacklisted this week for siphoning their proceeds to the parallel market, thus, triggering domestic inflationary pressures

Construction firm chairman, Mr Sebborn further noted that the properties segment continued in the year with its strategic focus of refurbishing its industrial assets to enhance rental earning capacity.

That saw the conclusion of refurbishments of two properties in Bulawayo and Harare resulting in rental yields firming to nine percent (2021: 3,5%).

“In addition, land bank valued at $53 million (US$439 000) was acquired during the year in line with the value preservation strategy.

“The quarry mining business unit, Stemrich Investments (Private) Limited, established in the prior year, contributed positively towards the Group profitability. The segment manufactures stone aggregates which are key in the contracting business.”

On financial performance in the period under review, Mr Sebborn said the group recorded revenues of $46,33 billion (2021: $25,28 billion) resulting in a volume increase of 83 percent.

The growth in revenue was mainly driven by a firm order book in the roads and earthworks, mining, buildings and housing infrastructure segments.

Revenue earned in United States Dollars improved to 65 percent (2021: 35 percent ) as a proportion to total revenue.

Earnings before Interest Taxes Depreciation and Fair Value Adjustment (EBITDFVA) increased to $13,18 billion (2021: $5,40 billion).

He said the earnings growth was mainly attributable to improved operational efficiencies and exchange gains of $4,8 billion (2021: $197 million) arising from a net foreign currency asset position.

In the period under review, the financial position of the Group strengthened to $58,9 billion (2021: $39,2 billion), which is in line with the Company’s growth and value strategies, he noted.

In addition, Mr Sebborn said the increase in the financial position is attributable to the revaluation and fair value measurement of property, plant and equipment and investment property.

Cash generated by operating activities declined to $729 million (2021: $8,7 million).

The decline in cash generated by operating activities was mainly attributable to the slow progression in collection of contracts in progress and trade receivables following the temporary suspension of payments by Treasury.-chronicle