Strong order book buoys Masimba
BUSINESS REPORTER
Listed construction firm, Masimba Holdings Limited, reported a solid financial performance in the quarter to March 31, 2023 despite economic headwinds ravaging the economy, driven by a strong order book.
Revenue for Masimba grew by 18%, driven by a strong and firm order book in the roads and earthworks, mining, and energy sectors during the period under review.
In a trading update for the quarter, Masimba company secretary Pearl Mutiti said: “The group has a firm order book with tenures of between six to 18 months. The order book is spread over the roads and earthworks, mining, and energy sectors.”
She added: “Profitability in the period remained stable owing to cost containment strategies being implemented by the group.”
Mutiti said during the period under review, Masimba’s liquidity position was satisfactory.
Capital expenditure incurred in the period under review amounted to US$2,783,773 against US$3,571,713.
She said the group’s safety, health, environmental, and quality management systems performed satisfactorily in the period under review.
The first quarter of 2023 commenced on a good note with month-on-month inflation slowing down to 0.99% in January, however, the gains realised were reversed towards the end of the quarter due to an upward trend in inflation, which resulted in year-on-year inflation closing at 87.6%.
The use of multiple and ‘uncontrollable’ alternative market exchange rates in the economy has contributed to the deterioration of inflation levels which continues the status quo has the potential of threatening the viability of long-term infrastructure developments.
In the outlook, Masimba expects the macroeconomic environment to remain constrained on the back of a contractionary fiscal policy and continued pricing distortions emanating from exchange rate disparities in the market.
Mtiti implored the authorities to urgently implement corrective measures to restore economic stability in the market.
Masimba is worried that the execution of the order book may be negatively impacted by the prevailing volatility in the current macro environment.
