daniel chigunwe
Nelson Gahadza
Construction firm Masimba Holdings says revenue for the nine months to September 30, 2024, grew 10 percent to US$45,8 million, attributable to a firm order book in mining and housing infrastructure segments.
The company, in a trading update, however, said the performance was subdued due to liquidity constraints in the market.
“Profitability during the period under review remained positive, mainly due to improved profit constraints margins resulting from cost containment strategies that were implemented, leading to operational efficiencies,” reads the trading statement in part.
For the period under review, the company said the liquidity position strengthened due to enhanced working capital management, despite liquidity constraints that prevailed in the market.
The group said it remains committed to upholding best practices in safety, health, environment, and quality management systems.
“To that end, it performed satisfactorily, with zero accidents reported in the quarter and year to date,” says Masimba.
In the outlook, Masimba said the macroeconomic environment is expected to remain tight due to contractionary fiscal policy and ongoing pricing distortions arising from exchange rate discrepancies in the market.
The company said the third quarter of 2024 commenced with moderating inflationary pressures primarily driven by the introduction of Zimbabwe Gold.
However, this position was short-lived as the devaluation of the Zimbabwe Gold in late September 2024 put the exchange rate under pressure, resulting in increased inflationary pressures by the end of the quarter.
“As a result, we believe that securing sustainable financing for infrastructure development projects underway nationwide will anchor sustained growth and contribute to tangible socio-economic transformation.
“Despite the challenging environment, the group is forecast to remain profitable for the financial year ending 31 December 2024,” reads the statement.
Bongani Ndlovu