Masimba Holdings Limited (MHL), an industrial and contracting firm, is working on projects worth US$104 million. The order book includes projects in various industries such as roads and earthworks, water, housing, mining, and energy infrastructure. These projects are evenly distributed between the public and private sectors.
MHL’s chairperson, Greg Sebborn, stated in the company’s financial results for the year ending December 31, 2022, that the current state of infrastructure in the country created opportunities for the firm. NewsDay quotes him as saying:
The group has a firm order book valued at US$104 million as at the reporting date, with tenures of between six to 18 months. The order book, which is evenly balanced between private and public sectors, is spread over energy, housing, buildings, roads, mining and water infrastructure.
The current state of infrastructure in the country presents opportunities for the group as evidenced by a long project pipeline and increased tendering activities. Unlocking of these opportunities is dependent on the continued stability of the economy. In this regard, we implore the authorities to continue pursuing a balanced and sustainable fiscal policy.
The government needs a total of US$19.68 billion for infrastructure and utilities from 2021-2025. For 2023 alone, the sector requires US$5.07 billion.
Sebborn praised the government for its ongoing investment in infrastructure development, which he sees as crucial for economic development.
The group’s revenue increased by 83% to ZW$ 46.33 billion during the reviewed period, up from ZW$ 25.28 billion in 2021. This growth was driven by a strong order book in segments such as roads and earthwork, mining, buildings, and housing infrastructure.
Sebborn said the financial position of the group strengthened to ZW$ 58.9 billion from a 2021 comparative of ZW$ 39.2 billion, which was in line with the company’s growth and value strategies.
What triggered the strength:
Sebborn stated that the total capital expenditure for property, plant, and equipment, as well as investment property, amounted to ZW$ 4.4 billion and ZW$ 66 million, respectively, in comparison to ZW$ 2.6 billion and ZW$ 1 billion in 2021. This translates to a total of US$6.7 million in 2022, down from US$11.3 million in 2021.
Additionally, the increase in financial position is due to the revaluation and fair value measurement of property, plant and equipment, and investment property. The revaluation surplus and fair value gains in 2022 were $8.3 billion and $4.3 billion, respectively, compared to $156 million and $1.3 billion in 2021.
Sebborn stated that the group improved its liquidity position, enabling it to manage any short-term debts that may arise. He also noted that the temporary suspension of payments was one of several measures taken by fiscal authorities to reduce speculative trading.
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