HARARE, September 7 (The Source) – Civil engineering group Masimba Holdings on Wednesday reported a $111,000 after tax profit for the six months to June from a loss position of $353,000 last year as the company recorded improved business from the mining sector.
Revenue in the half year more than doubled to $8, 5 million from $4,1 million.
“We were coming from a very low base. (The profit) is a small figure but in terms of motivating us and consolidating the position we have achieved, it is a very good start and we believe that in the full year to December we will be profitable and certainly 2017 should be better,” managing director Canada Malunga told The Source.
“The improving commodity prices are a source of motivation we believe we could see some exciting projects in the mining sector which has been a core market to Masimba. We have also seen a realignment of investment portfolios with investment managers diversifying towards infrastructure and brick and mortar.”
The company’s costs to turnover ratio improved from 37 percent to 14 percent as a result of cost containment measures and improved efficiencies.
Malunga said Masimba, which has over the years benefited from several lucrative government projects such as the upgrading of Bulawayo’s international airport and construction of toll gates, currently has limited exposure to government contracts.
“We are mostly confined to retentions than anything else,” he said adding that government had settled its $5 million debt for previous works done.
Earnings per share improved to 0,05 cents from -0,15 cents previously.
The board declared a special cash dividend of 0,27 cents per share.