Key Highlights:
- Profit after tax increased by 15% to ZW$292.0 million
- Inclement weather in first quarter slowed productivity particularly in roads segment
- Contributed ZW$8.5 million towards the procurement of COVID-19 vaccines
HARARE – Construction group, Masimba Holdings Limited’s firm order book position continued in the six months period to June 30, 2021. With that position buoyed by demand in mining, infrastructure and roads segment, came an increase in revenue further cemented by growth in foreign currency earnings.
The Group said on Thursday that revenue for the half-year period improved to ZW$2.1 billion, a jump of 58% from ZW$1.4 billion recorded during the same period last year.
“In addition, revenue earned in United Sates Dollars as a proportion to total revenue for the period improved to 35% (2020:20%) owing to a diversified project portfolio,” Group chairperson Gregory Sebborn said in a statement accompanying the financials.
“Profit before tax grew at a slower rate of 19% to ZW$435 million (2020: ZW$364 million), mainly due to inclement weather in the first quarter, which negatively affected productivity, particularly in the roads segment.”
Profit after tax grew by 15% to ZW$292.0 million compared to ZW$252.9 million SPLY. This is despite facing inclement weather in the first quarter, which negatively affected productivity, particularly in the roads segment.
Meanwhile, the Group’s financial position strengthened to ZW$6.717 million (2020: ZW$5.597 million) on the back of acquisitions of investment property, plant and equipment, in line with the value preservation strategy.
“The capital expenditure was financed by a combination of internal and external resources,” Sebborn said.
Resultantly, borrowings increased to ZW$255 million (2020: ZW$156 million) representing a sustainable debt-to-equity position of 10% (2020: 8%) at the close of the reporting period.
As part of its Corporate Social Responsibility (CSR), the Group expended ZW$7.8 million to various programmes which included support for the 2021/22 agriculture season, in particular the small-scale irrigation schemes in the Manicaland region, among other initiatives.
Subsequent to the reporting date, the Group contributed ZW$8.5 million to the National Development Fund towards the procurement of COVID-19 vaccines.
About Masimba Holdings
Masimba Holdings Limited is a well-established company in Zimbabwe providing engineering and infrastructure solutions to the agricultural, commercial and corporate sector as well as housing, mining, public and water sectors. The company has three operation divisions; Masimba Construction Zimbabwe, Proplastics and Property Development.
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