Masawara in $3,6m profit

HARARE - Africa-focused investment firm, Masawara Plc, has registered a $3,6 million profit in the half year to June 2017 up from $2,3 million in the same period in 2016.

Masawara — a jersey registered investment company — has interests in insurance, hotels, agrochemicals, property (Joina City) and technology clusters.

The group’s insurance unit registered $6,2 million for the six-month period following improved performance of Botswana Insurance Company Limited and Grand Reinsurance Company despite a decline in performance of the Zimnat Life Assurance Group.

“The performance of Cresta Zimbabwe improved by $0,2 million for the six-month period ended 30 June 2017 when compared to the same period last year as a result of cost reduction initiatives,” the group said in a statement.

“Occupancy for the current six month period (52 percent) was static when compared to prior year and revenue per available room declined from $37 during the prior half year to $33 as a result of continuing price wars in the industry.

“The group’s share of the performance of Cresta Marakanelo declined by $0,2 million due to a seven percent reduction in occupancy,” Masawara added.

The group’s agro chemicals segment, comprising investments in Sable Chemical Industries Limited and Zimbabwe Fertiliser Company Limited (ZFC) recorded a $1,5 million loss before tax compared to a loss of $1,8 million in the previous corresponding period.

Joina City’s occupancy ration declined to 54 percent in the period under review from 60 percent in 2016.

“The six percent decline in Joina’s occupancy was mainly driven by the unit’s decision to cancel the lease contracts of non-performing tenants.

“Although the ratio of debtors as a percentage of revenue increased by 10 percent, this ratio is expected to improve as a result of the unit’s strategy which focuses on retaining performing tenants,” the company said.

Occupancy rate refers to the ratio of leased space compared to the total amount of available space.

The Shingai Mutasa-led group recorded a decline in cash and cash equivalents of $0,8 million from December 31, 2016 with cash flows from operations of $7,4 million.

Masawara said the decline in cash and cash equivalents was driven by cash utilised in investing activities of $9,3 million.

“The cash utilised in investing activities was mainly the result of the purchase of financial instruments of $15,4 million.

“Net cash from financing activities includes proceeds from borrowings of $2,4 million, the repayment of borrowings of $1,5 million and the payment of dividends to non-controlling shareholders amounting to $0,2 million,” the company said.

In the period under review, the total assets of the group at June 30, 2017 amounted to $313 million from $288 million in December 2016.

Of these assets $297 million were attributable to continuing operations, while total liabilities of the group amounted to $205 million.

Of these liabilities $195 million were attributable to continuing operations.

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