- A number of construction works were completed during the period
- PAT up 15.7% ahead of prior year
- Full-year results expected to be ‘significantly’ ahead of the comparative period
Harare – Masimba Holdings Limited, a Contracting and Industrial group in Zimbabwe, providing engineering and infrastructure solutions to the agricultural, commercial and corporate sector as well as housing, mining, public and water sectors, today issued a trading update for the quarter ended 30 September 2020 showing a strong operational performance on both construction and income levels.
The trading environment during the quarter was stable aided by the Foreign Currency Exchange auction system and a contractionary fiscal policy. This, resultantly, contributed to the progressive reduction of month-on-month inflation and stability of prices of construction materials and services.
Commenting on the business performance, the Group said, “The volume of works, encompassing roads, mining and housing infrastructure, increased significantly in the quarter under review. A number of works, including the Skyline to Chimanimani road, were completed in the period while the rest are progressing well and are on program.”
The business remained profitable in the period under review with profit after tax in hyperinflationary terms at 15.7% compared to a margin of 2% in 2019.
“This improved performance is mainly attributable to productivity and procurement efficiencies,” the Group said adding that the financial position remained strong and sufficiently liquid with current and gearing ratios of 1,96 (2019:1,36) and 2% (2019: 2%) respectively.
Meanwhile, despite the obtaining liquidity constraints, the group said the debtors book performed satisfactorily in the period.
“Pursuant to the Group’s value and growth strategies, significant amounts were expended in capital equipment to support the growing order book. The capital expenditure was funded by internal resources and external borrowings which closed the quarter at ZWL26,767,710 (December 2019: ZWL4,714,360)”.
As a result of the firm order book, the Group is expecting the results for the year ending 31 December 2020 to be significantly ahead of the comparative period.
Listed on the Zimbabwe Stock Exchange, the company has three operation divisions; Masimba Construction Zimbabwe, Proplastics and Property Development. Masimba Construction is responsible for design, development, planning, engineering and construction of commercial buildings, private housing developments and earthwork projects in Zimbabwe, and the fabrication and erection of structural steel. The other subsidiaries offer turnkey engineering solutions to the construction industry, as well as provide reinforcement steel, steel fixing, wire mesh and cutting and bending products.
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