Strong balance sheet puts Masimba on secure footing
AFTER the exit of Murray Roberts, a renowned pan-African engineering and construction company, in 2012, the market had no high hopes for Masimba Holdings, which immediately entered a new phase, changing its name and taking the new strategic vision of the new shareholders.
e shareholders, under Zumbani Capital, were largely indigenous and soon steered the ship to stability and growth. A few years later, Masimba gave birth to Proplastics, a construction materials focused entity, through a spinoff.
e spinoff company was later to separately list on the Zimbabwe Stock Exchange (ZSE).
Masimba stands out in the current year due to its financial outperformance in large driven by a strong balance sheet and order book. In the six months period to June, its revenue grew by 52% to ZWL$9,6 billion, as it reported a firm order book in mining, infrastructure and roads projects.
e company is involved in the construction of the Harare to Beitbridge Road. A key takeaway from the group’s income performance was that half of it was earned in forex.
e ratio is set to increase given government’s deliberate move to pay some its creditors in forex particularly the contractors working its road infrastructure projects. is is a strategic benefit for Masimba which will allow it to meet all its import requirements using internally generated funds and avert the challenges associated with the auction market.
ere has, however, been an improvement in forex availability on the market as well as currency stability which should both help grow the order book as some suspended projects resume.
A stronger balance sheet position has allowed for Masimba to cover the cashflow gaps created by delayed payments by government.
Masimba timeline chart
•1934
Douglas Roberts, a Civil Engineer, starts Roberts Construction in South Africa.
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1950 Roberts Construction awarded
Falls Hydro Electric Powe contract
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1951 Robers Construction Rhodesia registered as a property development company
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1965 Promat, now known as Proplastics, was established as a subsidiary of Roberts Constrcution to manufacture and supply complete plastic pipe systems.
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1974 After IPO, Roberts Construction rebraded and listed on the stock exchange as M&R
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1980 M&R (Rhodesia) Limited rebrands to International Holding Limited
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1997 International Holdings Limited rebranded to Murray & Roberts Limited
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1997 M&R SA reduces its shareholding from 65% to 46,5%.
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2012 M&R SA sells 46,46% shares to Zumbani Capital
• •
2013 M&R Zimbabwe rebrands to Masimba 2015 Masimba unbundles Proplastics which subsequently separately lists.