Masimba Holdings revenue doubles
Masimba Holdings Limited said revenue volumes for the half year to June 30, 2020 more than doubled to $666 million compared to the same period in 2019 despite a challenging operating environment.
The group attributed this increase to roads and civils projects.During the period under review, a national lockdown was effected beginning March 30, 2020 which had a negative impact on business.
This was in addition to foreign currency shortages and inflationary pressures that led to an escalation of prices.
“The group’s results have been realised under difficult operating conditions as characterised by the continued hyperinflationary pressures and persistent foreign currency shortages.
“Notwithstanding these difficulties, the group, however, put in place strategies that enabled it to penetrate and retain markets,” said chairman Gregory Sebborn in a statement accompanying the group financial results for the half year period.
“The lockdown resulted in limited access and suspended works at some projects, except for two that the authorities sanctioned to continue operating under controlled Safety, Health, Environment & Quality conditions and World Health Organisation Covid-19 guidelines,” said Sebborn.
Operating profit rose 219 percent to $404,7 million from $126,8 million during the same comparable period year period on the back of production efficiencies and fair value adjustments of investment properties.
Earnings before tax (EBT) rose 40 percent to $176 million. Profit for the period came in at $122,39 million, which was a 2 percent growth on same period last year.
Non-current assets grew to $1 billion from $645 million largely driven by a directors’ revaluation of property, plant and equipment that was performed at the reporting date.
The revaluation resulted in a surplus and fair value adjustment of $195,25 million and $93,39 respectively.
Cash generated by operations improved to $127,55 million largely due to growth in business and improved profitability. The cash generated from operations and financing activities was in the main deployed to capital expenditure in line with the Board’s value preservation strategy.
Sebborn indicated that despite the inflationary headwinds, the business has adequate liquidity to meet its normal working capital requirements.
During the period under review, Masimba committed $2,3 million towards various corporate social investments that helped assist the vulnerable members of the community during the COVID 19 induced lockdown.
These include 90 tonnes of mealie-meal and 9,000 litres of diesel to the Manicaland, Midlands and Matabeleland provinces.
The group also constructed a 100-metre surfaced access road leading to the Chimanimani hospital.
In March 2020, the group donated a tractor to the Nyakomba Irrigation community to mark the successful completion of the construction of the Nyakomba Irrigation Infrastructure.
Indications are that the group has a solid order book the execution of which, in the medium term, is dependent on the impact of the COVID-19 pandemic on its operations and business partners.
“Focus will continue on value preservation strategies as guided by its value, growth and governance pillars,” said Mr Sebborn.–ebusinessweekly.co.zw
