Mash Holdings’ revenue scales up 47% in Q1 2021 amid lockdown relaxation

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  • Revenue for quarter was ZW$66.2 million
  • Occupancy rose by 2.2%
  • Operating profit by 18.9%

Property investment and development company, Mashonaland Holdings Limited has recorded a 47% increase in revenue in the first quarter of its fiscal year ended 31 December 2020 as a result of an upward rent review, relaxation of lockdown restrictions, and an improvement in occupancy levels in the quarter which allowed the business to pick up.

In monetary terms, the company’s revenue for the quarter was ZW$66.2 million against ZW$44.9 million recorded in the comparative quarter to 31 December 2019.

Complementarily, occupancy levels rose from 77.7% to 79.4%, and operating profit climbed by 18.9% to ZW$36.4 million from ZW$30.6 million in the comparative period, however, the operating profit margin decreased by 19.5% due to reported increases in operational expenses.

“Operating expenses increased by 59% to ZWL$30.7million driven by movement in unofficial market exchange rates which had a bearing on the Zimbabwe Dollar value of materials and services consumed by the company. Service providers have continued tracking premium exchange rates in the pricing of products and services to hedge against inflation,” the company’s managing director Gibson Mapfidza said in a trading update.

The company also stated that the property market as a whole benefitted from the easing of lockdown which saw tenants paying up arrears that had been deferred during the lockdown period.

In the same breath, the company lamented a low demand in office space due to a depressed macro-economic climate forcing which has seen some companies in the same market ZimRe Property Investments moving to convert its Harare CBD properties to alternative uses that include student accommodation, boutique hotels and residential apartments in a bid to increase revenue and minimize vacancies.

The company’s property investment portfolio value remained at an inflation-adjusted valuation of ZWL$10billion determined from the last valuation performed as of 30 September 2020, however, it is expected to increase following the next valuation as Mashonaland Holdings is pursuing a number of development projects and one housing project has already been okayed for commencement.

“The development of the Bluff Hill cluster housing project is on-going with the construction of a model house having commenced in February 2021. All the necessary approvals and development permits are now in place,” the managing director reported.

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