Masimba Holdings order book valued at US$141m
CONSTRUCTION firm Masimba Holdings Limited says the state of infrastructure development across the economic sectors and the Government’s concerted efforts in stabilising the macro-environment provides growth opportunities for the Group which has an order book of US$141 million.
The firm says the order book is skewed towards public sector-funded projects.
Guided by robust economic blueprints including the National Development Strategy 1, the Government has, since 2017, embarked on unprecedented infrastructure development in line with its aspirations to transform the country into an upper-middle-income economy by 2030.
In its half-year ended 30 June 2023 financial results, the group noted that the Government has committed to maintaining the tight monetary and fiscal policies enacted in May 2023.
The group’s chairman, Mr Gregory Sebborn said “A conducive and stable economic environment is a necessary and key enabler to unlocking the order book. To that end, we are encouraged by the Government’s concerted efforts in stabilising the macro-environment.”
Mr Sebborn said the current state of infrastructure across the economic sectors provides opportunities to the Group.
“The order book at the end of the reporting period was valued at US$141 million and was skewed towards public sector funded projects.”
However, the firm noted that in the short term, the operating environment is forecast to remain constrained on the back of tight liquidity challenges and declining commodity prices on the international market. Revenue for the six months’ period increased by 137 percent to $113 billion compared to $48 billion registered in the corresponding period last year.
The growth was mainly driven by a diversified order book in the roads and earthworks, mining and housing infrastructure sectors.
Mr Sebborn said the proportion of United States dollar revenues in the period improved to 71 percent compared to 55 percent last year.
He noted that the associated revenues and costs are converted to Zimbabwe dollars based on the Willing Buyer Willing Seller foreign exchange rates.
The Group realised profit before tax of $59 billion (2022: $26 billion) representing 124 percent growth on the comparative period, mainly driven by production efficiencies, fair value gains on investment property, exchange gains emanating from a net foreign currency asset position and monetary loss adjustment.
“The Group’s financial position remained robust with a strong and firm asset base, as total assets closed the period at $468 billion (2022: $184 billion). The increase was mainly due to revaluation surplus and fair value gains realised on property, plant and equipment and investment property, respectively.
“Cash generated from operations improved to $30 billion (2022: ZWL (0.2 billion), mainly attributable to business growth and improved profitability. Capital expenditure incurred in the period to support the firm order book amounted to $5 billion (2022: $14 billion) which equated to US$3,6 million (2022: US46,7 million) in foreign currency terms.”
As at the end of the financial period, total borrowings were at $1 billion (2022: $1,3 billion), included in the borrowings is a foreign currency-denominated loan balance of US$440,000, the results show.
Given the current lending rates and economic outlook, the Group’s levels of borrowings are sustainable, said the chairman.-chronicle
