malvernmugadzikwa
Enacy Mapakame
A strong order book for various infrastructure projects buoyed Masimba Holdings Limited’s performance for the third quarter to September 30, 2022 as revenue jumped 70 percent above prior year comparative.
The projects ranged from roads and earthworks as well as mining and housing infrastructure.
In a trading update, Masimba indicated that profitability for the quarter remained solid despite the inflationary pressures that caused increases in costs.
During the period under review, the operating environment was predominantly unstable characterised by accelerating inflation with month-on-month averaging 14 percent over the period. Year-on-year inflation closed off at 280,4 percent compared to 51,5 percent reported in the comparative period.
However, towards the end of the quarter, month-on-month inflation decelerated to 3,5 percent, which was largely attributable to policy interventions.
Company secretary Pearl Mutiti said despite the challenging business environment, the group managed to keep its head above water on various measures such as containing costs.
“The business maintained favourable liquidity and gearing ratios through implementation of robust and stringent working capital strategies, notwithstanding the liquidity constraints that prevailed in the market following the temporary suspension of local payments by National Treasury,” she said.
According to the Group, capital and investment property expenditure decreased to US$7 million from US$11 million as at December 2021 mainly to support the growing order book as well as a value preservation strategy. This was funded by a combination of internal resources and vendor supply credit facilities.
Despite the obtaining economic challenges, Masimba is upbeat interventions by the Government to tame inflation and stabilise the foreign currency exchange rate will continue to create a positive momentum that will allow the group to execute its projects.
Mutiti Said: “We applaud the Government on the policy interventions which have culminated in a stable foreign currency exchange rate regime. This has, resultantly, created an improved environment for the execution of infrastructure projects.
“The group has a firm and well-balanced order book with average tenures of between three to twelve months.”
The group, therefore, projects improved financial performance for the full year to December, compared to prior year.
Bongani Ndlovu