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Enacy Mapakame Business Reporter
Despite a challenging operating environment characterised by inflationary pressures and exchange rate volatility, Masimba Holdings Limited believes prospects remain bright on the back of its strong order book.
According to chairman Greg Sebborn, the group’s order book valued at US$104 million cuts across all segments of construction. This comes as the country has massive construction projects currently ongoing backed by both the private sector and the Government.
“The group has a firm order book valued at US$104 million as at the reporting date, with tenures of between six to eighteen months,” said Mr Sebborn in an update for the group’s performance for the year to December 31, 2022.
“The order book, which is evenly balanced between private and public sectors, is spread over energy, housing, buildings, roads, mining and water infrastructure.
“The current state of infrastructure in the country presents opportunities for the group as evidenced by a long project pipeline and increased tendering activities. Unlocking of these opportunities is dependent on the continued stability of the economy. In this regard, we implore the authorities to continue pursuing a balanced and sustainable fiscal policy,” he said.
During the full year to December 31, 2022, the group recorded a solid financial performance, driven by the firm order book and strategic investments. The company’s contracting business saw revenues increase by 83 percent to $46 billion, with the order book evenly balanced between the public and private sectors.
The group praised the Government’s investment in infrastructure development as a key enabler of economic growth.
According to Mr Sebborn, the group’s properties segment also performed well, with a strategic focus on refurbishing industrial assets to enhance rental earning capacity. Two properties in Bulawayo and Harare underwent refurbishments, resulting in rental yields firming to 9percent. In addition, the acquisition of a land bank valued at $53 million (US$439,000) supported the value preservation strategy.
The quarry mining business unit, Stemrich Investments (Private) Limited, contributed positively to the group’s profitability by manufacturing stone aggregates for the contracting business. During the year under review, Masimba’s earnings before interest, taxes, depreciation, and fair value adjustment (EBITDFVA) increased to $13,18 billion from $5,4 billion.
Profit for the year jumped 248 percent to $11,5 billion from $3,3 billion in the comparable period.
The company’s total capital expenditure in property, plant, and equipment and investment property amounted to $4,4 billion and $166 million, respectively.
The increase in the financial position was also due to the revaluation and fair value measurement of property, plant, and equipment and investment property, with revaluation surplus and fair value gains realised amounting to $8,3 billion and $4,3 billion, respectively.
Total assets jumped to $58,8 billion from $39,1 billion.
Masimba, having considered the group’s profitability, its future cash flows on its operations, has declared a final dividend of US0,315 cents and 288,58 cents per share.
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