Masimba Holdings is pivoting towards private sector construction projects to strengthen cash flows and reduce reliance on Government-funded infrastructure contracts, even as its order book climbed US$278 million.
The Zimbabwe Stock Exchange listed construction group said the strategy helped drive revenue growth in the year to December 2025, while improving liquidity and positioning the business for more stable long term growth.Zimbabwe business news
Revenue rose 9,6 percent to US$61,5 million, up from US$56,1 million in the previous year, largely supported by strong activity in the housing development segment and new projects across mining, roads and building construction.
Net profit edged slightly higher to US$6,5 million from US$6,4 million.
Chairman Mr Gregg Sebborn said the company deliberately increased exposure to private sector contracts during the year, a shift that is now reshaping the group’s revenue mix.
“The group performed commendably well on its strategic focus of growing the private sector to gradually balance the contribution of the public sector, achieving a 56 percent private sector contribution up from 46 percent in the prior year,” Mr Sebborn said.
He added that the shift had “significantly improved the business’s cash flow position and set a solid foundation for continued growth”.
Masimba’s contracting division remains the backbone of the business, supported by a rapidly expanding pipeline of projects.
Mr Sebborn said the company had secured new contracts across several sectors including mining infrastructure, housing developments and road construction, pushing the total order book to US$278 million.
“The contracting business continues to demonstrate its strength, supported by a robust and growing order book valued at US$278 million,” he said.
“We are pleased to report the addition of significant new orders across the mining, building, housing development, and road sectors, reinforcing our market leadership and enhancing future revenue visibility.”
The group also invested US$4,2 million in capital expenditure during the year to expand operational capacity. The highlight was the acquisition of a new asphalt manufacturing plant aimed at strengthening the firm’s road construction capabilities.
These investments lifted total borrowings by 30 percent to US$4,1 million, although the company said the funding had been secured through medium-term facilities from local banks.
One of the most notable contributors to growth was Masimba’s housing development business, which has become an increasingly important revenue stream.
Mr Sebborn said the Impali Housing Project in Shurugwi was nearing completion, with residential stand sales beginning in the final quarter of the year.
The project is expected to support revenue growth in the coming financial periods as demand for residential stands continues to rise.
Meanwhile, the group’s quarrying and concrete subsidiary Stermrich continued to support construction operations through the supply of aggregates and building materials.
The unit also expanded its capabilities through the acquisition of a concrete precast manufacturing machine, allowing it to diversify its product range and generate additional income streams.
Mr Sebborn said the investment was already contributing positively to the group’s performance.
Masimba’s property portfolio experienced a modest decline in rental income during the year as several properties underwent refurbishment.
Rental earnings slipped 3 percent, though the company expects the upgrades to improve returns once the work is completed.
Despite the temporary setback, the group’s overall financial position strengthened during the year.
Total assets rose to US$96,7 million from US$92,3 million, while net asset value climbed 19 percent to US$36,4 million.
The company also improved its working capital position by 20 percent to US$19,2 million after reducing current liabilities.
The board declared a final dividend of 0.34 US cents per share, bringing the total dividend for the year to 0.61 US cents, up from 0.47 US cents in 2024.
As the construction group approaches its 75th anniversary in 2026, management says the combination of a strong order pipeline, increased private sector exposure and continued infrastructure demand should underpin future growth.
Mr Sebborn expressed confidence that the company’s diversified project base would help it navigate any shifts in the economic environment.
“Masimba’s confidence in the future is unwavering,” he said.
“Through combining strategic foresight with operational resilience, we will continue to deliver superior value for all stakeholders.”-herald
