Masimba Holdings’ revenue for the four months to April 2018 went up 52 percent from the comparable period to close at $11,3 million driven by strong order book growth in commercial buildings, agriculture and housing infrastructure segments.
Chief executive Canada Malunga told the company’s Annual General Meeting that gross profit performance for the group strengthened to 12 percent compared to prior year of nine percent mainly attributable to improved operating efficiencies.
Overhead efficiencies improved to 10 percent compared to 12 percent in 2017 but inflationary pressures driven by foreign currency shortages was the biggest threat.
“Due to the above factors, earnings before tax for the quarter was significantly ahead of that recorded in the comparable period. The balance sheet has continued to improve in line with our long term strategy to build a strong and liquid balance sheet to support our order book growth agenda,” said Malunga.
Capital expenditure incurred in the period under review amounted to $1 million versus $406 000 and this was financed by a combination of internal resources and debt.
Loans outstanding during the period were at $2,1 million against $1,9 million reported as at December 2017 and accordingly order book growth was financed by internal resources.
Malunga said the debtors book has been performing satisfactorily with the exception of $1,6 million due on a project that has been temporarily suspended due to some technical issues.
“We believe that these issues will be resolved in the current financial year.”
Malunga said the group during the period reduced its shareholding in Proplastics to six percent from 11 percent, after the group had identified a higher yielding property development opportunity within the business.
The investment arose out of the transaction costs funded by Masimba at the point of the unbundling in 2015. The balance will continue to be held as available for sale assets.
