Roads and civil projects boost Masimba’s earnings

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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.

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