- Project to involve developing and leasing a hospital for medical sector private entity
- Construction expected to commence in the last quarter of the year
- Revenue increased by 51% during the 10 months ended 31 July 2021
- Occupancy levels improved to 79.3%
Harare – Mashonaland Holdings Limited says it is pursuing a new project in which it will develop and lease a hospital for a private entity operating in the medical sector.
In a trading update for the 10 months ended 31 July 2021, company managing director, Gibson Mapfidza said the company has already signed an agreement for the project to commence and it is currently at the pre-construction stage.
“The project is currently at pre-construction stage where the project team is working on the design development and local authority’s approvals. Construction activity is expected to commence in the last quarter of the year,” Mapfidza added.
The Company recently launched a housing project in Bluff Hill, the Mashview Gardens project which is ongoing and is expected to be completed in 18 months.
Mapfidza said the Company completed the construction of a model house for the Mashview Gardens project during the 10 months and project marketing and pre-selling is underway with the Company currently negotiating disposal contracts with prospective buyers.
During the period under review, Mash Holding’s revenue increased by 51% to ZWL275.54 million from a July 2020 comparative of ZWL182.78 million driven by periodic rent reviews which the business has been performing in line with market practice, and new leases concluded during the period.
Occupancy levels were up 2% to 79.3% from 77.6% due to new lettings in the portfolio.
The Company’s operating profit for the period improved by 33% to ZWL141.41million from ZWL105.93million recorded in the same period last year buoyed by revenue growth achieved during the 10 months.
However, following an increase in total operating expenses, the Company witnessed a 12% decrease in operating profit margin to 51% from a prior year comparative of 58%.
“Operating expenses increased by 75% to ZW$134 million driven by movements in unofficial market exchange rates which had a bearing on the Zimbabwe Dollar value of maintenance materials and services consumed by the company,” Mapfidza said.
Meanwhile, the Company changed its financial year end from 30 September to 31 December with effect from the current financial year which began on 1 October 2020 in line with the authority granted at the preceding Annual General Meeting.
“The change of financial year end has been approved by the Zimbabwe Stock Exchange (ZSE) and the Zimbabwe Revenue Authority (ZIMRA). Implementation of this change will result in a transitional 15-month financial period ending on the 31st of December 2021,” Mapfidza said.
The Company’s half year and full year financial period which was previously from 1 October 2020 to 31 March 2021 and 1 October 2020 to 31 December 2021 has been changed to 1 January to 30 June and 1 January to 31 December respectively.
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