Masimba starts financial year with solid order book

BUILDING and associated industries company, Masimba Holdings Limited, has started the current financial year with a solid order book that should help it maintain a growth trajectory.

The order book has projects spanning from roads, mining and housing infrastructure.

However, successful implementation of these projects is also dependent on solid policies that address the “pricing arbitrage risks” as well as creating a conducive environment for business operations.

Already, the re-introduction of the foreign currency auction system has helped bring exchange stability in the country.

For Masimba, the company has indicated its board will remain alive to the current risks and opportunities and will maintain its value and growth strategy in 2021. Currently, the group’s strong order is evenly distributed between both public and private projects.

During the year to December 2020, the group’s strong order book contributed to its jump in revenue to $5,2 billion from $1,4 billion recorded in the previous year.

“This represented a growth of 248 percent attributable to the strong order book that prevailed throughout the year.

“The roads and mining segments were the main revenue drivers in the period,” said chairman Gregory Sebborn in a statement accompanying the financials.

Earnings Before Interest, Taxes, Depreciation and Fair Value Adjustments (EBITDFVA) grew 125 percent to $1,07 billion from $477 million mainly driven by improved operational efficiencies on contracting projects, fair value gains realised on the revaluation of investment properties and exchange gains arising from a net foreign currency asset position.

Profit for the year rose 112 percent to $327 million. Basic earnings per share increased 113 percent to 135,8 percent.

Group’s total assets strengthened by 125 percent to $4,63 billion from $2,05 billion on improved profitability and adoption of a value preservation strategy implemented through the acquisition of property, plant and equipment. The investment property book as at 31 December 2020 increased to $694 million from $293 million while capital expenditure on plant and equipment was $213 million. Masimba’s net working capital improved to $454 compared to $316 million recorded in the previous year, while borrowings increased to $129 million mainly to support strategic capital investments and working capital.