HARARE, September 11 (The Source) – Masawara Plc reported a 57 percent increase in after tax profit to $3,6 million in the six months to June from $2,3 million in the comparable period last year.
Masawara, is an investment holding company with interests in property, insurance and hospitality in the southern African region.
Total revenue increased by 6 percent to $52,2 million from $49,2 previously.
The insurance division saw a marginal increase in after tax profit to $6,6 million from $6,7 million in the same period last year.
Joina City a mixed use complex in Harare saw occupancy decline to 54 percent from 60 percent in the same period last year owing to cancellation of leases by non-performing tenants.
“Although the ratio of debtors as a percentage of revenue increased by 10 percent, this ratio is expected to improve as a result of the unit’s strategy which focuses on retaining performing tenants,” the group said in statement accompanying interim results on Monday.
The hospitality unit, Cresta Zimbabwe narrowed its loss to $15,000 from $232,000 in the same period last year as a result of “cost reduction initiatives”.
Cash and cash equivalents declined to $27,4 million from $29,1 million previously.
“The decline in cash and cash equivalents was driven by cash utilised in investing activities of $9,3 million.”
“The cash utilised in investing activities was mainly the result of the purchase of financial instruments of $15,4 million. Net cash from financing activities includes proceeds from borrowings of $2,4 million, the repayment of borrowings of $1,5 million and the payment of dividends to non-controlling shareholders amounting to $0,2 million.”
The agrochemicals segment saw a 46 percent decline in after tax profit to $1,3 million from $2,3 million in the comparable period last year. Masawara has a 22.5 percent interest in Zimbabwe Fertilizer Company (ZFC) and a 50.6 percent interest in Sable Chemicals. Sable commenced production under the full importation model in November 2016 but revenues remained depressed resulting in a loss before tax of $1.5 million.
The group’s total assets increased to $312,9 million from $288 million previously.