Construction giant Masimba Holdings remained profitable in the quarter ending September with profit after tax in hyperinflationary terms at 15.7 percent from two percent recorded during the same period last year with the results anchored on productivity and procurement efficiencies.
According to the construction giant, the trading environment was largely stable, supported by the Foreign Currency Exchange auction system and a contractionary fiscal policy.
Resultantly, this contributed to the progressive reduction of month-on-month inflation and stability of prices of construction materials and services.
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 program,” Masimba said in its latest trading update.
The group’s financial position remained strong and sufficiently liquid with current and gearing ratios of 1.96 percent and two percent, respectively.
“Notwithstanding the obtaining liquidity constraints, the debtors’ book performed satisfactorily in the period,” the group said.
Pursuant to the group’s value and growth strategies, significant amounts of money were expended in capital equipment to support the growing order book.
The order book has remained firm in the nine months period resulting in improved volume and resource utilisation efficiencies.
The capital expenditure was funded by internal resources and external borrowings which closed the quarter at $26.76m from $4.71 million as at December 2019.
Accordingly, the results for the year ending 31 December 2020 are expected to be significantly ahead of the comparative period.