Firm order book bolsters Masimba’s 2019 performance

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  • Operating profit improved by 426%
  • Profit before tax increased by 613%
  • US$7.4 million spent on Capex over 3 years

Masimba’s revenue grew 34% in the 2019 financial year to  ZWL334 million from  ZWL249 million in 2018 on the back of a solid order book.

The Roads, Mining, Retail & Commercial Buildings, and Housing Infrastructure segments were the main revenue drivers for the period under review.

The Group’s EBITDA(operating profit) improved by 426% from the comparative period due to growth in revenue and operating efficiencies buttressed by technological innovations that were instigated in the current period.

Profit before tax increased by 613% to ZW$70 055 900 from ZWL10,526,235 in 2018, steered by operational efficiencies on contracting projects while Profit After Tax came in at an inflation-adjusted figure of ZW$34 million.

Also contributing to the profit performance were fair value gains realized on the revaluation of investment properties, exchange gains arising from a net foreign currency asset position, and net monetary loss arising from a net non-monetary asset.

Highlighting the group’s capital expenditure, Group Chairman  Gregory Sebborn said:

“As part of the strategy to preserve value, capital expenditure, and work in progress for the year amounted to US$3,017,325, bringing the three-year cumulative capital expenditure to US$7,406,892.”

The performance against the backdrop of weakening economic fundamentals in the economy with an inflation rate that closed the year north of 500% and a weakening local currency which lost more than 70% in 2019.

In terms of the group’s outlook, Gregory highlighted:

“The Group, as at reporting date, had a solid order book that included Roads, Housing and Mining infrastructure. The continued economic headwinds are likely to impact negatively on the execution of the order book”

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