Listed Construction firm, Masimba Holdings sustained revenue growth of 12 percent during third quarter (Q3) to September on the back of an improved order book in the Roads & Earthworks, Mining, Housing Infrastructure and Buildings sectors.
Profitability remained firm, despite inflationary cost pressure increases, the company said in its (Q3) trading update.
Towards the end of the quarter there was significant currency volatility which resulted in pricing distortions, mainly emanating from the gap between the official and parallel exchange rates.
“The business managed to maintain favourable liquidity and gearing ratios through implementation of robust and stringent working capital strategies. Notwithstanding the liquidity constraints that prevailed in the market, the debtors book performed satisfactorily in the period,” said Masimba.
Capital and investment property expenditure incurred in inflation adjusted terms at ZWL352,457,666 (December 2020: ZWL288,689,194) and ZWL180,779,340 (December 2020: ZWL112,273,194), respectively, was mainly to support the growing order book as well as a value preservation strategy.
The company said this was funded by a combination of internal resources and borrowings.
Resultantly, borrowings closed the quarter at ZWL301,404,875 (December 2020: ZWL174,547,978).
The Group has a strong order book which is evenly balanced between public and private sectors. Resultantly, the forecast results up to 31 December 2021 are projected to be ahead of the comparative period.