Masimba reports US$53.8 million revenue, up 8% des...

Masimba reports US$53.8 million revenue, up 8% despite challenging environment

**Masimba Holdings Group chairman, Gregory Sebborn**

Zim Now Writer

Masimba Holdings, a leading construction and property development company in Zimbabwe, has reported a mixed bag of results in its annual statement for 2023, with revenue growth of 8% to US$53.8 million offset by a decline in earnings and a challenging operating environment.

Despite the challenges, the company remains committed to its strategy and is focused on cost containment and unlocking value from its land bank.

Group chairman, Gregory Sebborn said the operating environment was relatively stable during the first half of the year, but the second half saw increased market volatility driven by liquidity and foreign currency constraints. The company noted that the use of the United States Dollars for trading purposes is estimated at over 80%, demonstrating the increase in the dollarisation of the economy.

The company’s revenue for the year was US$53.8 million, representing a growth of 8% from the previous year. However, the growth in revenue volumes was affected by delayed payments and liquidity constraints, which negatively impacted project efficiencies.

The company’s earnings before interest, taxes, depreciation, and fair value adjustment declined by 11% to US$12.6 million, due to the slowdown of works in the fourth quarter and sub-optimal currency payment mix on most of the projects.

The company’s total assets improved to US$85.8 million, driven by growth in contracts in progress and contracts receivables. However, the current ratio declined to 1.01 due to a strategic decision to purchase property, plant, and equipment with short-term facilities.

The company’s occupational health and safety performance was maintained at zero lost-time injuries, and it was awarded two sectoral awards for outstanding safety performance in the construction sector.

Masimba Holdings said it has adopted the Global Reporting Initiatives standards in identifying, measuring, and managing material impacts within its operations. However, it reported a 50% increase in diesel consumption due to more plant-intensive projects compared to the previous year.

The company has partnered with the Forestry Commission of Zimbabwe through a program themed “Beautification of Cities”, which involves providing trees for free for planting along roads constructed near cities and as part of its borrow pit rehabilitation programme.

The Board has decided not to declare a dividend for the financial year ended December 31, 2023, citing the need to conserve cash and prioritise cost containment and unlocking value from its land bank.