Strong order book buoys Masimba
BUSINESS REPORTER
Listed construction firm, Masimba Holdings Limited, says it has a strong over book that is well balanced and has a potential to drive profitability for the full year to the end of December.
This comes after revenue for Masimba grew 70% in the quarter to September 30, 2022 from the comparative period, largely due to improved order book in the roads and earthworks, mining and housing Infrastructure.
In a trading update for the quarter to September 30, 2022, Masimba company secretary Pearl Mutiti said: “The group has a firm and well-balanced order book with average tenures of between three to twelve months.”
She added: “The group’s results for the year ended December 31 2022 are forecast to be significantly ahead of the comparative period.”
Mutiti said during the period under review, Masimba maintained a favourable liquidity and gearing ratio through the implementation of robust strategies.
“Profitability in the period remained satisfactory, despite inflationary cost pressure increases.
“The business maintained favourable liquidity and gearing ratios through the implementation of robust and stringent working capital strategies, notwithstanding the liquidity constraints that prevailed in the market following the temporary suspension of local payments by the National Treasury,” Mutiti said.
She said the group incurred capital and investment property expenditure of US$7m compared to US$11.4m in the prior comparative period, largely to support the growing order book as well as a value preservation strategy.
This was funded from a combination of internal resources and vendor supply credit facilities.
