HARARE – Construction firm Masimba Holdings Limited (Masimba) says the new government must implement sound and clear policies that are conducive to business and attractive to investors.
“We urge the government to prioritise the implementation of sound policies and incentives to promote the key sectors of agriculture, mining, infrastructure and social services,” said Canada Malunga, Masimba chief executive.
This comes as the new government is currently boggled with an arduous task of reviving the economy ? which grew for the first time in a decade in 2009 but is now showing signs of being burnt out.
Zimbabwe’s economy is currently plagued with liquidity difficulties that have adversely affected the implementation of contracting and infrastructure projects.
Malunga noted that the lack of competitively priced medium to long term capital significantly affected the ability of the country to finance infrastructure development, which, together with uncertainty during the period surrounding the July 31 elections, has led to the group recording revenues that were flat on the previous 12 months.
Masimba ? formerly known as Murray and Roberts ? revenue in the full year to June, 2013 grew by two percent to $43,96 million from $43,01 million last year.
The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) in the period was slightly down at $3,12 million from $3,56 million.
Malunga said the current year EBITDA translates into a 42 percent increase on the prior year as the figure included a non-operating fair value adjustment on investment property of $1,36 million. Headline earnings were up at $543 130 from $27 113 in 2012 while earnings amounted to 0,23 cents per share, 62,3 percent lower than the 0,61 cents achieved in the prior year.
Profit for the period fell 61 percent to $502 634 from the $1,3 million achieved in the prior year
Construction generated the bulk of the revenue at $29,03 million, an increase of eight percent from last year.
The group was currently working on four government projects.
“One of the projects was funded on time, which is the Tokwe-Murkosi project. It has reached a critical stage now,” Malunga said.
He added that cash management in general was a challenge with the cash outflow of $356 413.
Capital expenditure was at $941 890 while borrowings amounted to $3,71 million comprising $2,46 million short term borrowings.
The group had disposed of investment properties amounting to $345 000 in order to reduce the borrowings and maximise the balance between cost of capital and return to shareholders.
The group declared a dividend of $0,0012 per share.