Masimba Holdings’ construction volume increases in third quarter

Author Name
Respect Gwenzi
Author
Stock Market 1 week ago
    • A number of construction works were completed during the period
    • PAT up 15.7% ahead of prior year
    • Full-year results expected to be ‘significantly’ ahead of the comparative period

    Harare – Masimba Holdings Limited, a Contracting and Industrial group in Zimbabwe, providing engineering and infrastructure solutions to the agricultural, commercial and corporate sector as well as housing, mining, public and water sectors, today issued a trading update for the quarter ended 30 September 2020 showing a strong operational performance on both construction and income levels.

    The trading environment during the quarter was stable aided by the Foreign Currency Exchange auction system and a contractionary fiscal policy. This, resultantly, contributed to the progressive reduction of month-on-month inflation and stability of prices of construction materials and services.

    Commenting on the business performance, the Group said, “The volume of works, encompassing roads, mining and housing infrastructure, increased significantly in the quarter under review. A number of works, including the Skyline to Chimanimani road, were completed in the period while the rest are progressing well and are on program.”

    The business remained profitable in the period under review with profit after tax in hyperinflationary terms at 15.7% compared to a margin of 2% in 2019.

    “This improved performance is mainly attributable to productivity and procurement efficiencies,” the Group said adding that the financial position remained strong and sufficiently liquid with current and gearing ratios of 1,96 (2019:1,36) and 2% (2019: 2%) respectively.

    Meanwhile, despite the obtaining liquidity constraints, the group said the debtors book performed satisfactorily in the period.

    “Pursuant to the Group’s value and growth strategies, significant amounts were expended in capital equipment to support the growing order book. The capital expenditure was funded by internal resources and external borrowings which closed the quarter at ZWL26,767,710 (December 2019: ZWL4,714,360)”.

    As a result of the firm order book, the Group is expecting the results for the year ending 31 December 2020 to be significantly ahead of the comparative period.

    Listed on the Zimbabwe Stock Exchange, the company has three operation divisions; Masimba Construction Zimbabwe, Proplastics and Property Development. Masimba Construction is responsible for design, development, planning, engineering and construction of commercial buildings, private housing developments and earthwork projects in Zimbabwe, and the fabrication and erection of structural steel. The other subsidiaries offer turnkey engineering solutions to the construction industry, as well as provide reinforcement steel, steel fixing, wire mesh and cutting and bending products.

    Equity Axis News

     

Stock Market ● 6 days ago
RioZim withdraws cautionary announcement, agrees payment structure with RBZ

Delays in payments for gold deliveries strained the Company’s working capital Agreement reached with RBZ and Fidelity will help revitalize operations RioZim has an extensive portfolio of resources in gold, base metals, diamonds, coal and chrome HARARE – ZSE listed, gold producer RioZim Limited has withdrawn the cautionary announcements dated 15 June 2020 and 8 July 2020 regarding the impass...


Stock Market ● 1 week ago
ZPI delists from local bourse on ZHL Acquisition

Harare – Real estate holding company, Zimbabwe Property Investments Limited (ZPI) has voluntarily delisted from the Zimbabwe Stock Exchange (ZSE) with effect from the 10th of November 2020. This comes after an offer by ZPI’s parent company Zimre Holdings Limited (ZHL) to minority shareholders to acquire their shares in exchange for newly issued shares in ZHL which led to the parent holding 97,6%...

Stock Market ● 1 week ago
Improved foreign currency supply positively impacts on AfDis operations

Quarterly volumes up 28% Revenue up 15% Operations smoothened by improved accessibly to forex facilitated by the Forex Auction Harare – Liquor manufacturer and distributor African Distillers Limited has posted improved volumes in spirits and ready-to-drink (RTD) operations, as well as a jump in revenue for the third quarter, ended 30 September 2020 on the back of improved foreign currency s...

Analysis ● 1 week ago
PPC overcomes COVID-19 woes with strong sales recovery

Sales volumes rose by a fifth in October YoY Experienced a muted sales in April and May 2020 due to the COVID-19 Cement volumes for PPC Zimbabwe grew by m approximately 5% Harare – JSE-listed Pretoria Portland Cement (PPC) said sales volumes have bounced back in the three months July to September 2020, showing a recovery of 20% to 25% year-on-year. The Group has operations in Zimbabwe thou...

Stock Market ● 2 weeks ago
BAT sales volumes slump 8% on depressed consumer spend, COVID 19

Harare – Zimbabwe Stock Exchange Listed cigarettes producer, British American Tobacco (BAT) has recorded an 8% decrease in sales volumes for the nine months ended 30 September 2020 mainly due to reduced consumer spending and the adverse impact of COVID 19. BAT produces some of Zimbabwe’s best-known cigarette products which include Madison, Everest, Dunhill, Newbury, Kingsgate and Ascot. In March...