Mash holds fort despite headwinds

Business Reporter
Zimbabwe Stock Exchange-listed entity Mashonaland Holdings reported a 40 percent increase in revenue to $4,9 million for the third quarter ended June 30, 2019.

In a trading update released last week, the property concern said operating profit was up 127 percent to $3,4 million.

The group also recorded an inflation beating profit before tax after it increased by 623 percent to $9,4 million.

The figures might, however, lack comparable characteristics given the change in currency between the 2018 and 2019 numbers.

The 2018 figures were recorded in US dollars while those in 2019 are now in Zimbabwean dollars.

To boost its revenue generation, the group is reviewing its rentals on a quarterly basis “in line with market practice”.

“The rent reviews for the period May 2019 to July 2019, achieved a weighted average increase in rentals of approximately 62 percent from the previous rent reviews, reads the trading update.

“The previous rent review achieved an average increase of 50 percent.”

In addition, “as at June 30, 2019, more than $500 000 had been collected from long outstanding tenant debtors”.

Disposal of Old Windsor Park Ruwa serviced stands is still in progress and the Group is actively marketing the project to different finance houses.

Going forward Mash Holdings said the property market is likely to remain depressed in the short to medium term.

“The group will continue with its strategic positioning thrust through scouting and acquisition of strategic land banks, and preserve value.”

The property concern said construction projects have generally been affected owing to increase in construction costs, lack of liquidity and lack of foreign currency to import foreign supplied building materials.

As a result the challenging operating environment may delay the timing of development projects that the group has in the pipeline,” it said.

Cost management measures will be employed for all projects underway.

The company will, however, continue looking for strategies to ensure that projects commenced will be delivered as planned.

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