Masimba faces price distortions
BUSINESS REPORTER
Construction firm, Masimba Holdings, says pricing distortions emanating from an “inefficient foreign currency allocation system” could hamper its strong order book.
The firm’s order book grew 75% to US$145m in the six months to June 39, 2022 from US$83m reported in the prior comparative period.
“The group has a firm diversified order book with tenures of between three months to 18 months. The book is well balanced and diversified between public and private sectors. However, execution thereof may be hampered by pricing distortions emanating from an inefficient foreign currency allocation system and prevailing hyperinflation,’’ board chairman Greg Sebborn warned.
Revenue for the group grew by more than half to ZWL$9.6bn in the reviewed period from ZWL$6.3m, while profit for the group increased 81% to ZWL$4.5bn in the reviewed period from ZWL$ 851.4m in the prior comparable period, largely due to production efficiencies and exchange gains emanating from a net foreign currency asset position.
The total assets stood at ZWL$28bn from ZWL$25bn reported in the same period last year.
This was largely due to revaluation of plant and equipment and investment property resulting in a revaluation surplus of ZWL$6.2bn and a fair value gain of ZWL$2.4 bn.
Sebborn, however, called for policy consistency.
“The Government has implemented a variety of measures aimed at containing inflationary pressures in the economy. I, however, urge that these measures be underpinned by a consistent application of policies so that they can achieve the much desired results,’’ he said.
The board remains cautiously optimistic and would implement strategies to preserve the group’s value and delivery, notwithstanding the challenges in the environment, Sebborn said.
