Masimba Holdings, a leading construction and property development company in Zimbabwe, has released its annual statement for the year 2023, highlighting the challenges faced by the company in a volatile operating environment.
According to Masimba Holdings chairman, Gregory Sebborn, 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 Zimbabwe Statistical Agency and the Reserve Bank of Zimbabwe, in their respective reports, have indicated 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.
“Revenues for the year were at USD53.8 million (2022: USD49.8 million) representing a growth of 8% from 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 in line with clients’ payment patterns,” Sebborn noted.
The contracting business commenced the financial period with a solid order book, but the order book remained fairly balanced between the public and private sectors for the period under review.
The company reported a growth in revenue volumes, but the growth declined in the fourth quarter as a conservative approach was taken by the Group to align work execution in line with clients’ payment patterns.
Earnings before Interest, Taxes, Depreciation and Fair Value Adjustment (EBITDFVA) declined by 11% due to the slow down of works in the fourth quarter and sub-optimal currency payment mix on most of the projects.
Total assets of the Group improved, but the current ratio declined due to a strategic decision to purchase property, plant and equipment with short term facilities.
The company reported that the execution of its order book may be negatively impacted by the effects of the El Nino weather phenomenon and the declining mineral prices.
The Board has decided not to declare a dividend for the financial year ended 31 December 2023.
Canada Malunga retired from the position of Chief Executive Officer of the Group on 31 December 2023, and Fungai Matahwa was appointed as Group Chief Executive Officer effective from 1 January 2024.
The company said it has adopted the Global Reporting Initiatives standards in identifying, measuring, and managing material impacts within its operations.
Masimba Holdings reported a 50% increase in diesel consumption due to more plant-intensive projects compared to the previous year.
The Group has partnered with the Forestry Commission of Zimbabwe through a program themed ‘Beautification of Cities.
Discover more from Nehanda Radio
Subscribe to get the latest posts sent to your email.
