eBusiness Weekly
Fradreck Gorwe
Zimbabwe Stock Exchange-listed contraction group, Masimba Holdings Limited posted a 64,3 percent growth in revenue to $27,7 million for the half-year to June 30, 2019 from $17,9 million recorded in the prior year comparative.
The company provides innovative engineering and infrastructure client solutions to the agriculture, commercial, communications, housing, mining, water and public sectors.
Positive movement in revenues was achieved notwithstanding a volatile operating environment characterised among other headwinds with policy changes, foreign currency shortages, tight liquidity and high inflation. Discontinuation in the publication of year-on-year inflation figures also hindered performance calculations by the contracting company.
Revenue increase translated to other positive financials more particularly growths in profits, both before and after tax, as compared to 2018 comparative.
Profit before interest, tax, depreciation, amortisation and fair value increased by 16,8 percent on prior year’s $1,3 million to $7,7 million in the period under review. This northward movement owed much on “procurement, production, and plant utilization efficiencies”.
Profit before tax went up by 4,5 percent to $13,4 million compared to $600 441 ($0,6 million recorded in prior year. After income tax deductions, profit for the year at $12,6 million was still a remarkable increase compared to $532 599 ($0,53 million) recorded in 2018 comparative.
The company further banks future positives on significant infrastructure projects awarded subsequent to the reporting period which “will better resource utilisation efficiencies”.
It also places faith on Government interventions through the implementation of various policies and efforts to fund infrastructure and agriculture.
“We commend the bold changes implemented by Government in the period under review, in particular the market related pricing of fuel and electricity, introduction of the foreign exchange interbank market and the Zimbabwe dollar.
“We hope that continued efforts by Government to allocate funding to infrastructure and agriculture, in addition to its commitment to the Transitional Stabilisation Programme, will spur the economy to positive growth in the medium to long term,” said Gregory Sebborn on behalf of the board.
