Masimba turnover jumps 19pc

Masimba Holdings Limited’s turnover for the first quarter to March 31, 2022, jumped 19 percent compared to the same last year supported by a strong order book.

By the close of the financial year to December 2021, the group had a firm order book, valued at US$214 million compared to US$72 million in the same prior period last year tenures of between six to 18 months.

The group revealed the book was evenly balanced between private and public sectors spread over housing, buildings, roads, mining and water infrastructure.

According to company secretary Pearl Mutiti, profitability for the quarter remained stable as supported by a hedged financial position.

The group was sufficiently liquid with a current ratio of 1:11. Capital expenditure incurred in the period under review amounted to $382 million from $43 million expended during the same period last year while borrowings at end of the quarter were at $268 million compared to $399 million in the comparable period.

The volatile economic condition characterised by foreign currency shortages, inflationary pressures and global trends may, however, have an adverse impact on execution of projects.

“The group has a firm order book, the execution of which may be negatively impacted by the prevailing volatility in the current macro environment.

“In addition, the continued conflict in Ukraine has affected supply chains and pricing of key construction materials such as steel, fuel and bituminous products.

“Despite the continued difficulties, the group will remain focused on its value preservation strategy that is anchored on resource optimisation, product, and market diversification,” she said in a trading update for the quarter.

The contracting business has remained firm, driven by roads and earthworks, water, housing and mining infrastructure”.

During the past year, the works were evenly spread between the public and private sectors. The Government’s renewed interest in infrastructure development was the key driver of growth for the road and earthworks order book.

In addition, the contract periods improved from short term to medium-long term on the back of an improved operating environment.

Management at Masimba also earlier indicated the group identified certain opportunities in the region and strategies have been put in place to pursue them, with anticipated close out in the short to medium term.-The Herald