Harare – Contracting and Industrial group, Masimba Holdings Limited posted a better turnover for the full year to 31 December 2018, registering an increase of 46 percent to US$40.0 million from US$27.5 million achieved in 2017, thanks to its firm order book.
In a statement accompanying the results, Group chairman Gregory Sebborn said the 2018 order book was dominated by retail and commercial buildings, agriculture, mining, housing and roads infrastructure projects.
“Highlights of projects completed in 2018 are the Old Mutual Eastgate Mall, CIPF Norton Mall and the Datvest Office Block in Harare,” he noted.
Earnings Before Tax Depreciation and Amortisation (EBITDA) was 38 percent ahead of the comparative period to close at US$3.3 million from US$2.4 million last year.
Sebborn said EBITDA increased due to the improved turnover growth and continued cost containment strategies.
Consequently, net profit for the period grew by 69 percent to close off at US$1.2 million from US$698 738 in 2017.
In the period under review, the financial position of the Group strengthened to US$42.0 from US$33.2 million 2017 due to the improved profitability of the business and the Board’s deliberate decision to apply positive cash flows to capital expenditure in order to preserve value.
Sebborn said capital expenditure and capital work in progress incurred during the amounted to $US$1.9 million from US$3.0 million in 2017 whilst capital ratios remained “satisfactory” and borrowing levels at US$1.8 million compared to US$1.9 million in 2017.
“Total cumulative capital expenditure for the five-year period 31 December 2018 ammounted to US$6.7 million,” said Sebborn.
“The sustained investment in capital expenditure has increased the Group’s technological and operational capability to engage more complex, diverse and large-scale projects going in to the future.”
Meanwhile, the Group highlighted that commissioning of the Nyakomba Irrigation Infrastructure and Sawanga Shopping Mall Projects will be completed in the first quarter of 2019.
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