Masimba Holdings' order book contributes to an 8% ...

Masimba Holdings' order book contributes to an 8% increase in revenue

Audrey Galawu

Masimba Holdings' contracting business commenced the financial period with a solid order book comprising roads and earthworks, water, housing, mining, and energy infrastructure projects.

The order book remained fairly balanced between the public and private sectors for the year ended December 31, 2023.

The quarry mining business unit, Stemrich Investments (Private) Limited, contributed positively to the Group’s profitability. The segment manufactures stone aggregates which are key in the contracting business.

Performance in the Property portfolio was firm, and the business unit contributed positively to the Group’s performance, while occupancy of properties remained at 100%.

In it's 2023 annual report, the group revealed that revenues for the year were at US$53.8 million (2022: US$49.8 million) representing a growth of 8% from the comparative period.

"The growth in revenue volumes was attributable to a strong and firm order book at the beginning of the year. However, growth declined in the fourth quarter as a conservative approach was taken by the group to align work execution with clients’ payment patterns.

“Earnings before Interest, Taxes, Depreciation and Fair Value Adjustment declined by 11% to USD12.6 million (2022: US$14.2 million). 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,” reads the report

In addition, profitability of the group was impacted by the sub- optimal currency payment mix on most of the projects that were not in line with the increased dollarisation of the economy.

Total assets of the group improved to US$85.8 million (2022: US$63.3 million), mainly driven by growth in contracts in progress and contracts receivables. The growth in contracts in progress and contracts receivables was attributable to growth in revenues coupled with the impact of delayed payments from clients on the back of liquidity constraints.

Cash generated from operating activities increased to US$5 million (2022: US$0.8 million) and this was largely applied to capital expenditure of US$4.2 million (2022: US$4.7 million).