The impact of the Covid pandemic on Masimba Holdings and its partner holds sway on the implementation of the company’s solid order book, board chairman Greg Sebborn has said.
The Covid-19 pandemic has triggered restrictions as government moves to combat the spread of the virus.
Sebborn in a statement accompanying the company’s financials for the half year ended June 30 said the lockdown resulted in limited access and suspended works at some projects, except for two that the authorities sanctioned to continue operating under controlled safety, health, environment and quality conditions and the World Health Organisation Covid-19 guidelines.
“The group has a solid order book the execution of which, in the medium term, is dependent on the impact of the Covid-19 pandemic on its operations and business partners.
Focus will continue on value preservation strategies as guided by its value, growth and governance pillars,” Sebborn said.
Revenue more than doubled to ZWL$666,130,525 from ZWL$320,682,914 in the same period last year, driven by the roads and civil projects.
Operating profit jumped to ZWL$404,704,273 from ZWL$126,802,626 attributable to production efficiencies and fair value adjustments of investment properties.
Non-current assets grew to ZWL$1,010,067,903 from ZWL$645,141,261 in the same period last year, largely driven by a directors’ revaluation of property, plant and equipment that was performed at the reporting date.
The revaluation resulted in a surplus and fair value adjustment of ZWL$195,259,214 and ZWL$93,397,843, respectively, Sebborn said.
Cash generated by operations improved to ZWL$127,553,422 from ZWL$77,615,352, largely due to growth in business and improved profitability.
The cash generated from operations and financing activities was in the mainly deployed to capital expenditure in line with the board’s value preservation strategy, Sebborn said.
He said the business has adequate liquidity to meet its normal working capital requirements despite the inflationary headwinds.
There will be no dividend for Masimba shareholders after the board evaluated the potential negative impact of the Covid-19 pandemic and guided by the group’s value and growth and the cashflows associated with the growing order book.