‘Infrastructure development key in driving growth’

Senior Business Reporter
Building and associated industries company, Masimba Holdings Limited, says Government’s renewed interest in infrastructure development was key in driving growth for the road and earthworks order book.

The group’s chairman, Mr Gregory Sebborn in a statement of financials for the year ending December 2021, said in addition to Government projects, the contract periods improved from short term to medium-long term on the back of an improved operating environment.

“The contracting business was firm, driven by roads and earthworks, water, housing and mining infrastructure. The works were evenly spread between the public and private sectors.” Mr Sebborn said.

“We applaud the Government for the continued infrastructure investment drive and its determination to improve the ease of doing business in the country.

“Government’s renewed interest in infrastructure development was the key driver of growth for the road and earthworks order book. In addition, the contract periods improved from short term to medium-long term on the back of an improved operating environment. The Properties segment’s strategic focus in the period was the refurbishment of its industrial assets to enhance their earning capacity.”

Mr Sebborn said in the new financial period, plans are underway to refurbish properties in Harare, Bulawayo and Gweru.

In addition, a total land bank valued at ZWL398 million (USD3,6 million) was acquired during the year under review.

The Group recorded revenues of ZWL7,355 billion down from ZWL8,391 billion in the prior year resulting in a decline of 12 percent.

The decline was mainly due to the slow start of some key projects in the fourth quarter of the reporting period, the firm said.

“Resultantly, Earnings before Interest Taxes Depreciation and Fair Value Adjustment (EBITDFVA) decreased to ZWL1,572 billion (2020: ZWL1,729 billion).

“Notwithstanding the marginal fall in revenues, EBITDFVA to turnover remained firm at 21% (2020: 21%). The proportion of revenue earned in United States Dollars was at 35% (2020: 20%) and this was recorded in the financial records at the prevailing foreign exchange auction rate.”