Masimba projects cautious outlook

Masimba projects cautious outlook
Published: 03 April 2018 (916 Views)
LISTED construction company Masimba Holdings has projected a cautious outlook for its operaions in this year on account of persistent foreign currency constraints that are hampering most business operations across industries in Zimbabwe.

Foreign currency shortages remain the biggest headwind in the current year despite indications orders are likely to outperform 2017, Masimba chief executive Canada Malunga told analysts at the company's annual results briefing last Thursday.

The forex problems are threatening execution and delaying completion of construction projects, Mr Malunga said.

"In terms of headwinds; the number one challenge is forex. If there is anything that is frustrating to us and our clients and employees is the issue of foreign currency. Foreign currency is really a big problem. All along we had been able to cope but the pressure that we felt in the last quarter of 2017 and this quarter is threatening the viability and execution of some of our projects," Mr Malunga said.

"Where we are talking about construction periods of four months, five months, six months, twelve months and so forth at times it becomes very difficult to complete superstructures when you start talking about foreign currency," he said.
Mr Malunga said plant breakdowns now take three to four weeks to turnaround due to foreign currency shortages.

As a result, the company has now been forced to increase stocks of spares instead of deploying the working capital in usual manner.

The company reported an after tax profit of $698 738, in the period to December 2017, up from $507 055 after registering a 43 percent turnover growth to $27,5 million, largely driven by the private sector particularly mining and housing infrastructure.

Earnings per share went up 35 percent on prior year to 0,31 cents.

Overheads stood at $1,8 million up from $1,6 million last year.

Included in staff costs is an amount of $217 000, which relates to taxation legacy issues that were resolved in the current year.

Other costs increased by 20 percent driven mainly by business growth and inflationary pressures in the last quarter.

Mr Malunga said the company was looking at spending $3 million in 2018 to support the current order book. The order book, which is confirmed and active, is valued at about $40 million.

In the last year the company embarked on major mining project where it did civil works. Masimba also started constructing the Old Mutual SMEs centre CBD building along Robert Mugabe, which is almost complete and will be commissioned on May 31, 2018.

Masimba is building a shopping mall in Norton, which was started at end of 2017.

The construction works are progressing on the site.

In Victoria Falls, Masimba started a 12-month project to construct a shopping mall with access roads and the structure.

The team is currently preparing for the foundations and platforms for the mall.

A road construction project on Kariba's mountains is also underway as well as a water reservoir.

In terms of capacity utilisation, based on current overheads, the group is sitting at upwards of 85 percent, Mr Malunga added.

- the herald

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Mugabe's son admitted to Parirenywatwa hospital

by Staff Reporter | 18 July 2018 | 402 Views

What are some of the best online games?

by Agencies | 18 July 2018 | 109 Views

Seizing opportunities in Zimbabwe's new era

by Never Ncube | 18 July 2018 | 142 Views

Chamisa rejects Zec's conditions for talks

by Staff reporter | 18 July 2018 | 263 Views

Tamborinyoka charged again for defacing posters

by Staff reporter | 18 July 2018 | 136 Views

Khupe, Wilson pledge to revive Bulawayo

by Staff reporter | 18 July 2018 | 130 Views

70% think Zec is non-partisan?

by Staff reporter | 18 July 2018 | 136 Views

ZEC intensifies preps for elections

by Staff reporter | 18 July 2018 | 127 Views

Woman assaults step daughter

by Staff reporter | 18 July 2018 | 140 Views

Chikurubi inmates graduate

by Staff reporter | 18 July 2018 | 135 Views

Inmate 'demands' kiss

by Staff reporter | 18 July 2018 | 171 Views

Pokello's son in Young Warriors team

by Staff reporter | 18 July 2018 | 145 Views

Is Mnangagwa going the Yahya Jammeh-way?

by Benny Gudo | 18 July 2018 | 132 Views

King Lobengula Foundation celebrates Mandela100 Centenary

by Sizwe Mda | 18 July 2018 | 102 Views

WATCH: Mnangagwa's message to fellow Twimbos

by Staff Reporter | 18 July 2018 | 126 Views

Zimbabwe dismisses new currency claims

by Staff reporter | 18 July 2018 | 143 Views

Mnangagwa says, 'Zim poised to be jewel of Africa'

by Staff reporter | 18 July 2018 | 207 Views

Pay rise for civil servants

by Staff reporter | 18 July 2018 | 271 Views

Inside Chamisa's winter of discontent

by Tichaona Zindoga | 18 July 2018 | 260 Views

Fading giants name new club boss

by Staff rpeorter | 18 July 2018 | 200 Views

Mnangagwa to name, shame land barons

by Staff reporter | 18 July 2018 | 227 Views

Matanga bans Chihuri raffle ticket sales

by Staff reporter | 18 July 2018 | 214 Views

Goba tribunal takes oath of office

by Staff reporter | 18 July 2018 | 155 Views

Hands off ZEC, says Youth League

by Staff reporter | 18 July 2018 | 168 Views

MDC-Alliance spoiling for fight they can’t win

by Lloyd Msipa | 18 July 2018 | 172 Views

Victory is certain, claims Mnangagwa

by Staff reporter | 18 July 2018 | 152 Views

Zimbabwe inflation rate hits 2,91%

by Staff reporter | 18 July 2018 | 146 Views

Bosso set for EGM

by Staff rpeorter | 18 July 2018 | 136 Views

Air Zimbabwe offers reward package

by Staff reporter | 18 July 2018 | 180 Views

Bosso fans group donate to ball-boys

by Staff reporter | 18 July 2018 | 84 Views

'Review of taxes, utility costs'

by Staff reporter | 18 July 2018 | 156 Views

Teachers sue property developer after stands deal sours

by Staff reporter | 18 July 2018 | 161 Views

Cheating couple locked up

by Staff reporter | 18 July 2018 | 227 Views

Cold spells till August

by Staff reporter | 18 July 2018 | 206 Views

Hippo attack, drown women in Zambezi river

by Staff reporter | 18 July 2018 | 163 Views

Tamborinyoka seeks removal from remand

by Staff reporter | 18 July 2018 | 154 Views

Chamisa's postal vote challenge hits a brickwall

by Staff reporter | 18 July 2018 | 242 Views