Masimba frets over ZiG contractor payments

CLOUDINE MATOLA

The government’s decision to pay contractors in the local currency has created uncertainty and poses a significant risk to cash flow and project planning for construction firm Masimba Holdings Limited, Business Times can report.

Masimba company secretary Pearl Mutiti said the policy announcement remains a concern given the local currency’s history of instability, making it difficult for the group to accurately plan and preserve value.

“The government’s announcement to pay contractors in ZWG remains a source of uncertainty and significant risk to cash flow and project planning,” Mutiti said.

Despite the uncertainties, Mutiti said the group expects to remain profitable and sustain its growth trajectory, supported by a strong order book.

During the first quarter of this year, Masimba delivered robust results, with revenue rising 13% to US$8.8 million while profit after tax increased 12% to US$453 000.

“The group delivered a strong and resilient performance during the period under review, reflecting continued operational efficiency, disciplined project execution, and the strength of its diversified project portfolio. Revenue for the quarter grew by 13% compared to the same period in the prior year to close at US$8.8m, while Profit after Tax increased by 12% to US$453 000,” Mutiti said.

She noted that the performance was achieved despite above-normal rainfall and a prolonged rainy season, which disrupted operations across several projects.

“This performance was achieved despite above-normal rainfall and a prolonged rainy season compared to prior comparable periods, which created challenging operating and construction conditions across several projects. Nevertheless, the Group’s project teams demonstrated strong adaptability, effective planning, and solid execution capabilities, enabling projects to continue progressing efficiently under the circumstances,” she said.

Masimba’s order book remains strong, underpinned by both public and private sector projects, providing a solid foundation for sustained growth and confidence in future performance.

To enhance operational capacity and improve execution efficiency, the group invested US$2 million during the period, mainly in hauling and trenching equipment.

Liquidity remained stable, with the current ratio improving marginally to 1.42 from 1.41 recorded at December 31, 2025, while the quick ratio remained unchanged at 1.26.

“Liquidity for the group remained stable with a current ratio and quick ratio of 1.42 and 1.26 respectively, marginally improving from the closing ratios of 1.41 and 1.26 respectively as at 31 December 2025. The group also incurred capital expenditure of US$2m in the period under review mainly on hauling and trenching units to boost its operational capacity and improve its execution efficiency,” Mutiti said.