Masimba back in the black, reports $696k FY profit

Masimba back in the black, reports  $696k FY profit

HARARE, March 29 (The Source) – Civil engineering group Masimba Holdings on Wednesday reported a $700,000 after tax profit for the full year to December from a loss position of $1,2 million previously on the back of a surge in the order book and cost cutting measures, chairman Gregory Sebborn said on Wednesday.

“The improved profitability was due to order book growth, cost containment and resource optimisation strategies pursued in the period,” Sebborn told analysts.

The group’s revenue rose 91 percent from $10 million in the previous year to $19,14 million driven by increased civil engineering and buildings projects that were largely funded by private sector and non-governmental organisations (NGOs).

However, Sebborn said foreign currency shortages have negatively impacted the group’s modernisation, material procurement and order book growth strategies.

The group’s EBITDA increased from $245,467 in the previous year  to $1,7 million on the back increased revenue.

Total assets increased by 16 percent from $21 million in the previous year  to $24,4 million largely on the back of an increase in contracts in progress and accounts receivable.

The group’s subsidiary, Reinforcing Steel Contractors Zimbabwe contributed a profit of $22,687 from $12,715 in the previous year. Sebborn said the subsidiary was hit by foreign currency shortages in importing its major source of raw materials, reinforcement steel.

The group invested $1,97 million in plant and equipment in a bid to position the business for anticipated opportunities, Sebborn said. The poor state of the country’s infrastructure presents growth opportunities in the short to medium term subject to the availability of external funding.

Additionally, Sebborn said the group is projecting an improved performance in 2017 attributable to a strong order book.

The company declared a final dividend of 0,14 cents per share.