Masimba Holdings revenue up 35pc

CONSTRUCTION and associated industries firm Masimba Holdings Limited results for the half year ended June 30, 2017 showed a 35 percent jump in revenue to $11, 579 million, thanks to its firm order book.

Briefing analysts, group chief executive Canada Malunga, said the company was sitting on a $38,4 million order book.

Of this, mining accounts for $5 million, infrastructure projects at $16,8 million while industrial and commercial projects accounted for $10,8 million.

The agriculture sector accounted for $5,8 million as the firm spreads its operations. Currently, the firm is working on irrigation infrastructure in Nyanga.

Although the economic fundamentals remain uncertain, management is upbeat especially on the back of infrastructure development projects lined up for the rest of the year and going forward.

“We are going to sweat the order book to ensure it enhances the bottom-line,” said Mr Malunga.

He, however, acknowledged foreign currency shortages were a serious cause for concern as this had a knock on effect on the business especially when acquiring spare parts.

During the six months under review, gross profit margins deteriorated to 12 percent from 15 percent in the comparable prior year period on the back of increased compromised productivity due to the incessant rains received during the first quarter of the year. This resulted in a negative impact of $200 000.

Profit before tax rose 23 percent to $185 081 from comparable period’s $150 138 on the back of increased turnover as well as overheads efficiencies.

Overhead efficiencies improved to 13 percent from 16 percent driven by the growth in topline and continued cost containment measures which resulted in an improved EBITDA of $713 649 from $633 561 recorded in the same period last year.

The group generated cash from operations amounting to $1, 622 million compared to $321 150 generated in the same period last year due to stringent cash collection strategies implemented during the period.

Basic earnings per share improved to 0,06 cents from 0,05 cents. Masimba did not declare a dividend in order to preserve capital for additional capital expenditure.

By close of trade yesterday, Masimba was flat at 5, 9 cents on the Zimbabwe Stock Exchange.