Masimba expects profitable year after growing order book

Masimba expects profitable year after growing order book

HARARE, May 26 (The Source) – Construction firm, Masimba Holdings, says it expects to report a profit in the first half of 2016, having registered positive growth in income in the first two quarters.

Chief executive Canada Malunga told shareholders at the company’s annual general meeting on Tuesday that the company’s focus is to grow the order book, which covers 72 percent of the company’s annual turnover.

“We are positive of achieving a profitable position at half year as well as at full year. The order book covers 72 percent of annual turnover and we are positive of achieving budget,” he said.

Malunga said in addition to growing the order book, focus will also be on cost containment.He added that the company would continue to streamline its asset base in order to create value for shareholders.

At a recent update for the first quarter of 2016, Masimba Holdings said it had an active order book of $18,2 million for 2016, which is expected to return the group to profitability this year.

Housing infrastructure accounts for $8,2 million of the $18,2 million order book. Mining accounts for $3,0 million, industrial $2,0 million, commercial $2,5 million while other orders account for the remaining $2,5 million.

Meanwhile, Malunga said while there has been a lot of positivity in the business, foreign paymentsfor key raw materials remains a big risk.

The country’s financial institutions are currently facing liquidity challenges in their nostro accounts, thus failing to settle international obligations on time.

Malunga said the company hopes recent monetary measures by the Reserve Bank of Zimbabwe (RBZ) would bring stability to the financial services sector.