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Tapiwanashe Mangwiro  and Francis Gakanje

Zimbabwe Stock Exchange (ZSE) listed construction firm — Masimba Holdings has applauded the Government’s infrastructure development drive, after the group’s revenue increased by 8 percent in the year to December 31, 2023.

Commenting on the group’s financial results for the period under review, Masimba Holdings chairman Greg Sebborn said; “Revenues for the year were at US$53,8 million from a 2022 revenue of US$49,3 million representing a growth of 8 percent from the comparative period.”

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The solid growth in revenues was attributed to a firm order book largely due to the Government’s ongoing infrastructure programme.

“We applaud the Government and the private sector’s continued investment in infrastructure development, being the key enabler to economic development,” said Mr Sebborn.

Stable performance was recorded in other segments of the business, most notably the property portfolio, which immensely contributed to the overall better for the group.

“Performance in the property portfolio was firm, and the business unit contributed positively to the group’s performance,” said Mr Sebborn.

Manufacturing of stone aggregates by the quarry business unit, Stemrich Investments (Private) Limited, also catalysed the out-turn.

“The quarry mining business unit, Stemrich Investments (Private) Limited, contributed positively towards the group’s profitability.

“The segment manufactures stone aggregates, which are key in the contracting business,” the chairman said.

However, earnings before tax, depreciation, and fair value adjustment (EBITDVA) retreated by 11 percent from US$142 million in 2022.

According to Mr Sebborn, late payments and liquidity constraints led to the decline in EBITDVA, which also slowed down work in the last quarter of the year.

“The decline in EBITDFVA was attributable to slow down of works in the fourth quarter due to delayed payments and liquidity constraints which negatively impacted project efficiencies,” the chairman added.

However, growth in contracts in progress and contracts receivables, caused the company’s assets to expand to US$85,8 million in the period under review.

Mr Sebborn said; “Total assets of the group improved to US$85,8 million from US$63,3 million in the previous period mainly driven by growth in contracts in progress and contracts receivables.”

In their outlook, Masimba believes that El Nino and declining mineral prices could have negative effects on the execution of the order book.

According to the chairman, there could be chances of prioritisation of food relief over infrastructure development resulting in budget cuts in the private sector due to the effects of El Nino.

“These factors could lead to the government prioritising food relief over infrastructure development and may result in capital expenditure budget cuts in the private sector,” added Mr Sebborn.

Additionally, cost containment and value unlocking from the firm’s land bank is expected to be the company’s focus to avoid stagnation caused by budget cuts.

Mr Sebborn said, “Due to the above, the group’s key focus area will be cost containment and unlocking value from its land bank.”

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