Roads and civil projects boost Masimba’s earnings

Construction group Masimba Holdings reckoned that the Board remains alive to the current risks and opportunities and will maintain its Value and Growth strategy in 2021.
  • Revenue increased by 108% to ZWL$666.1m
  • Non-current assets grew to ZWL1.1bn
  • The Group has a solid order book the execution of which is dependent on the impact of COVID-19

Harare – Zimbabwe Stock Exchange (ZSE)-listed, property and industrial firm, Masimba Holdings reported a modest earnings performance for the half year ended 30 June 2020 as most of the company’s operations remained firm despite the threat caused by COVID-19 pandemic.

In a financial report for the period under review, the Group’s chairperson, Gregory Sebborn said that revenue volumes at ZWL$666.1 million were ahead of comparable period by 108% mainly driven by the roads and civils projects.

Operating profit came in at ZWL$404.7 million compared to ZWL$126.8 million achieved in the same period last year.

“The increase in operating profit was attributable to production efficiencies and fair value adjustments of investment properties”, said Sebborn.

Non-current assets grew to ZWL1.1 billion from ZWL645 million in the prior year largely driven by a Directors’ revaluation of property, plant and equipment that was performed at the reporting date.

Sebborn said that the revaluation resulted in a surplus and fair value adjustment of ZWL195.3 million and ZWL93.4 million respectively.

In light of the COVID-19 which has caused business disruptions due to lockdown restrictions, Mr Sebborn said the Group has put in place a Business Continuity Plan to ensure that the identified risks are mitigated.

“The Group has a solid order book the execution of which, in the medium term is dependent on the impact of the COVID-19 pandemic on its operations and business partners.

“Focus will continue on value preservation strategies as guided by its value, growth and governance pillars,” he said.

Equity Axis News


Please enter your comment!
Please enter your name here