Masimba’s order book continues to strengthen

ZIMBABWE Stock Exchange (ZSE) listed construction firm Masimba Holdings has said its order book for the half year to June continued to strengthen, closing at US$254 million compared to US$248 million in the corresponding period primarily focused on public sector funded projects.

The firm adopted a disciplined approach to capital allocation, ensuring it invests for value.

Mr Gregory Sebborn, the group’s chairman, in a statement of financials for the half-year period to June 30 2024, said the approach is expected to provide financial strength and flexibility to fund growth and deliver healthy returns to shareholders.

Mr Gregory Sebborn

Revenue for the half year under review increased by 30 percent to US$31,5 million (2023: US$24,1 million). The improved performance was on the back of a solid order book in the roads and earthworks, mining, housing infrastructure and buildings segment.

“The proportion of the United States dollar-denominated revenues reduced to 63 percent (2023: 71 percent) mainly impacted by the composition of the order book skewed towards Government funded projects,” reads part of the financials.
Despite the challenging macro-economic environment, the group recorded a seven percent increase in profit before taxation for the period at US$4,9 million (2023: US$4,6 million).

“The group’s focus on cost discipline and operational efficiencies resulted in this improved profitability performance. The Group’s financial position remained robust with a firm asset base, as total assets closed the period at US$79,6 million (2023: US$85,8 million).”

Masimba Holdings

The group’s liquidity ratios improved with the quick ratios at 1.18 (2023: 1.01) and 1.07 (2023: 0.94), respectively.
As at the end of the financial period, total borrowings were at US$1,3 million (2023: US$1,9 million), resulting in low gearing ratios of four percent (2023: 8 percent).

Masimba Holdings said given the current lending rates and economic outlook, their levels of borrowings are sustainable.
The firm said the quarry mining operations continued to support the contracting business with the provision of aggregates, recording a 100 percent growth in volumes to the comparative period.

However, higher volumes could have been achieved if they had not been affected by liquidity challenges in the contracting unit, it noted.-chroncile