Masimba banks on long project pipeline

Construction firm Masimba Holdings says current state of infrastructure in the country presents opportunities for the Group as evidenced by a long project pipeline and increased tendering activities.

Masimba is among the top construction firms in the country that have been awarded contracts to upgrade and rehabilitate various roads that include the Beitbridge-Masvingo highway.

Chairman Mr Gregory Sebborn in the company’s 2022 annual report said unlocking of 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 with tenures of between six to eighteen months.

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

For the year under review, the Group recorded revenue of $46,33 billion resulting from a volume increase of 83 percent with the growth mainly driven by a firm order book in the roads and earthworks, mining, buildings and housing infrastructure segments.

However, in a trading update for the quarter to March 31, 2023, group revenue volumes were ahead of the comparable period by 18 percent, driven by a strong and firm order book.

Masimba said capital expenditure incurred in the period under review amounted to US$2,783,773 compared to US$3,571,713 in 2022. “The group’s liquidity position was satisfactory.”

However, Masimba said execution of the order book may be negatively impacted by the prevailing volatility in the current macro environment.

The company said the macro-economic environment is forecast to remain constrained on the back of a contractionary fiscal policy and continued pricing distortions emanating from exchange rate disparities in the market.-ebusinesseekly