Masimba Holdings posts five percent profit
INFRASTRUCTURE development group, Masimba Holdings has posted a five percent profit after tax for the quarter ended 31 March 2025, despite a 43 percent dip in revenue compared to the same period last year, as it recalibrates its operations towards private sector engagements.
Revenue for the period under review stood at US$8.1 million, down from US$14.3 million recorded in Q1 2024.
The group attributed the decline to a deliberate strategic pivot away from public works in favour of private sector contracts, which now account for 92 percent of total revenues, up from 40 percent in the comparative period.
In an update, Company Secretary, Pearl Mutiti noted that liquidity constraints continued to weigh heavily on project execution, with some public sector projects suspended to manage credit risk exposure.
“The Group’s liquidity position improved slightly, with a current ratio of 1:1.25, compared to 1:1.23 in the prior period,” the company said in a trading update. Group borrowings decreased to US$1.7 million from US$2 million in the previous year, with no new loans acquired during the quarter,” the group added.
Looking ahead, management remains cautiously optimistic about the macroeconomic outlook, citing an improved agricultural season and firming global mineral prices as potential catalysts for recovery.
“Despite maintaining a strong order pipeline, the Group continues to face operational headwinds from liquidity constraints and limited access to long-term financing, which restrict the Group’s ability to fully capitalise on existing opportunities.
“However, the Group is optimistic about an improvement in the macro-economic environment, supported by an improved agricultural season and upward trend in mineral prices. Therefore, in the short term, value preservation and a cost containment strategy remain key.
“In the short term, our focus remains on value preservation and cost containment, while positioning ourselves to capitalise on emerging opportunities,” said the group.-herald
