Harare – Masimba Holdings Limited turnover for the six months ended June 30 2018 increased by 55 percent to $17 948 319 from $11 579 479 during the same period last year.
Earnings Before Tax Depreciation and Amortisation (EBITDA) was 88 percent ahead of the comparative period to close at $1 343 762 from $713 643 last year.
Masimba said the growth in turnover was mainly on the back on the back of a solid order book in housing infrastructure, building and civil engineering segments.
It said EBITDA improvement was driven by operating efficiencies and growth in the topline.
Consequently, Profit Before Taxation for the half year grew by 224 percent to close off at $600 441 from $185 081 in 2017.
In the period under review, net working capital improved by 29 percent to $2 242 928 from $1 736 379 last year mainly due to implementation of effective strategies in working capital management.
Masimba said, included in the contracts receivables and work in progress balances of $14 167 302 from $15 106 704 in 2017 is an amount of $1 231 109 that is overdue on a project that has been suspended due to previously unforeseen cashflow difficulties that the client is faced with.
“The client and Masimba are jointly pursuing various measures so that the project, whose commercial viability has been successfully demonstrated, can be resuscitated in the shortest possible time. Accordingly, the Board believes that this overdue debt is recoverable.”
Cash and cash equivalent balances at the end of the reporting period were at $1 125 781 compared to $1 294 967 last year.
“The decrease in cash and cash equivalents was mainly attributable to the implementation of a working capital build up so as to fund project requirements.”
Masimba said capital expenditure in the period amounted to $1 196 893 compared to $914 166 last year.
The company said this was expended on plant and equipment to strengthen business capacity given the prevailing and anticipated contracting opportunities.
Additionally, the Group said borrowing at $1 984 393 were flat on the comparable period debt of $1 899 125.
The Group said in view of the current and anticipated growing order book and the need to strengthen capacity, given the constrained foreign currency availability and the pricing of imported equipment, its Board has recommended that no interim dividend be declared.
- Equity Axis News
