THE COUNTRY’S biggest construction and industrial group, Masimba Holdings Limited (MSHL), said they registered an increase in profits by 15.7% for the third quarter of 2020.
The group has been operating in an environment largely stable supported by the Foreign Currency Exchange auction system and a contractionary fiscal policy which contributed to the progressive reduction of month-on-month inflation and stability of prices of construction materials and services.
In a statement issued by the company secretary, Pearl Mutiti, said business remained profitable in the period under review with profit after tax in hyperinflationary terms at 15,7% (2019: 2%).
“This improved performance is mainly attributable to productivity and procurement efficiencies. The financial position remained strong and sufficiently liquid with current and gearing ratios of 1,96 (2019:1,36) and 2% (2019: 2%) respectively,” she said.
Mutiti also added that the volume of works, encompassing roads, mining, and housing infrastructure, increased significantly in the quarter under review.
“A number of works, including the Skyline to Chimanimani road, were completed in the period while the rest are progressing well and are on the program,” she added.
Pursuant to the Group’s value and growth strategies, significant amounts were expended on capital equipment to support the growing order book.
“The capital expenditure was funded by internal resources and external borrowings which closed the quarter at ZWL26,767,710 (December 2019: ZWL4,714,360).
“The order book has remained firm in the nine months period resulting in improved volume and resource utilisation efficiencies,” Mutiti said.