Masimba Holdings Limited - Presentation at Imara Investor Conference 2014

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Masimba Holdings Limited - Presentation at Imara Investor Conference 2014

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Masimba Holdings Limited - Presentation at Imara Investor Conference 2014

  1. 1. 1. What we do 1. Our Shareholders 1. Financial highlights December 2013 1. Outlook to 2014 and 2015 1. Conclusion In this presentation Key Dates: AGM and Trading Update: 26 June 2014
  2. 2. 3 Rebranding from Murray & Roberts to Masimba
  3. 3. Masimba is a leading contracting and industrial group providing Innovative engineering and infrastructure client solutions. Masimba was listed on the Zimbabwe Stock Exchange in 1974 Masimba Construction is the dominant player in Civil engineering and Building construction works, having completed significant projects in Zimbabwe and the region. Our manufacturing unit, Proplastics produces and distributes a wide range of plastic piping systems for different markets, supplying the local and regional markets. Key markets include Agriculture, water and sanitation, mining, telecommunications And building construction 2. Our Business
  4. 4. Market Estimate  Construction Infrastructure Materials Civils and Housing ✔ ✔ Water & Sanitation ✔ ✔ Telecommunications ✔ ✗ Mining ✔ ✔ Power & Energy ✔ ✗ Roads & Transport ✔ ✗ Agriculture ✔ ✔ Our Core competence is Construction and Infrastructure materials
  5. 5. 6 Masimba Construction at Work : Roads & Earthworks
  6. 6. 7 RoadsMasimba Construction at Work : Roads & Earthworks
  7. 7. 8Commissioned 22 Dec 2013 Masimba Construction at Work : Buildings
  8. 8. Water : Tokwe Mukosi Dam Tunnels 9 Masimba Construction at Work : Water Infrastructure
  9. 9. 10 . Masimba Construction at Work : Civil Engineering in underground Mines
  10. 10. 11 HousingMasimba Construction at Work : Low Cost Housing
  11. 11. 12 . Proplastics Piping Systems: Major Water pipelines
  12. 12. Rank Shareholder % Total 1 Zumbani Capital 46.58 2 Old Mutual Life Assurance Company 13.22 3 Stanbic Nominees 7.10 4 Fed Nominees 5.82 5 Standard Chartered Nominees 2.50 6 Moray Investments Holdings Limited 1.81 7 Turner, Roy 1.39 8 Equivest Nominees 1.32 9 National Social Security Authority 1.15 10 Stanbic Nominees (Private) Limited 0.95 81.84 Total Issued Share shares: 220,493,732 2. Our Shareholders at December 2013
  13. 13. 3. Financial Highlights: 18 months to December 2013
  14. 14. 18months 31 Dec 2013 Audited US$ 12months 30 Jun 2012 Audited US$ Revenue 62,314,449 43,961,311 EBITDA 3,941,011 3,126,166 EBITDA/Turnover 6.3% 7.1% Basic/(loss) Earnings per share (US cents) (0.03) 0.23
  15. 15. 18 Months 12 months Dec 2013 June 2012 Turnover 62,314,449 43,018,590 Construction 39,974,312 64% 26,896,765 63% Manufacturing 22,340,137 36% 16,121,825 37% Gross profit 10,739,893 6,618,184 Overheads (9,410,002) (6,157,692) PBIT 972,891 1,822,792 PBT 451,592 1,646,934 (Loss)/PAT (60,412 1,300,417 Ratios Gross profit % 17.2% 15.4% Overheads % 15.1% 14.3% PBIT % 1.6% 4.2% PBT % 0.7% 3.8% PAT % (0.1%) 3.0%
  16. 16. 63% 37% June 2012 Contracting Manufacturing 64% 36% December 2013 Contracting Manufacturing More pronounced slow down on contracting owing to effects of slowdown at unfunded projects
  17. 17. 3,777  2,170  3,463  9,410   ‐  1,000  2,000  3,000  4,000  5,000  6,000  7,000  8,000  9,000  10,000 July 12‐Dec 12 Jan 13‐Jun 13 July 13‐Dec 13 Total Group 2013 2,528  3,630  6,158   ‐  1,000  2,000  3,000  4,000  5,000  6,000  7,000 July 11‐Dec 11 Jan 12‐Jun 12 Total Group 2012 Overheads will continue to be sized to the environment that we face. Target reduction in 2014 is 30%
  18. 18. Shows 2013 slow down progressively 17,674  11,365  10,935  39,974   ‐  2,000  4,000  6,000  8,000  10,000  12,000  14,000  16,000  18,000  20,000  22,000  24,000  26,000  28,000  30,000  32,000  34,000  36,000  38,000  40,000 Jul12‐Dec12 Jan13‐Jun13 Jul13‐Dec13 Total Contracting 2013 13,558  13,339  26,897   ‐  2,000  4,000  6,000  8,000  10,000  12,000  14,000  16,000  18,000  20,000  22,000  24,000  26,000  28,000  30,000  32,000  34,000  36,000  38,000  40,000 July11‐Dec11 Jan12‐Jun12 Total Construction 2012
  19. 19. Progression shows some level of buoyancy 8,864  6,059  7,417  22,340   ‐  2,000  4,000  6,000  8,000  10,000  12,000  14,000  16,000  18,000  20,000  22,000  24,000 Jul12‐Dec12 Jan13‐Jun13 Jul13‐Dec13 Total Manufacturing 2013 8,462  7,660  16,122   ‐  2,000  4,000  6,000  8,000  10,000  12,000  14,000  16,000  18,000  20,000  22,000  24,000 July11‐Dec11 Jan12‐Jun12 Total Manufacturing 2012
  20. 20. As at 31 December 2013 As at 30 June 2012 US$ US$ ASSETS Non-current assets 17,369,798 18,973,622 Current assets 17,604,434 17,310,160 Bank balances and cash 2,476,137 1,986,789 Total assets 37,450,369 38,270,571 EQUITY & LIABILITIES Capital and reserves 20,594,178 19,269,855 Interest bearing borrowings 3,649,999 3,112,186 Other liabilities 13,206,192 15,888,530 Total equity and liabilities 37,450,369 38,270,571
  21. 21.  Strong balance sheet  Comfortable level of borrowings  Some period end cash utilized to pay off  maturing loans $600,000  Other liabilities   growth shows risk sharing with subcontractors  on slow paying projects   Government exposure $5.7m  Ongoing efforts to recover
  22. 22. 18months Dec 2013 US$ 12 months Jun 2012 US$ Cash generated by continuing operations 986,285 3,973,397 Interest paid (521,299) (175,858) Income tax paid (316,402) (224,067) Dividend received 520 7,724 Investing activities (171,687) (4,224,521) Financing activities 511,932 1,512,186 Net increase in cash and cash equivalents 489,348 868,861
  23. 23.  Business units were cash positive at  operating level  Minimum capex  $1.344 m in a difficult  environment  Property disposals proceeds: $850 k  Driven more by poor returns than cash flow  management  Paid loans on time and accessed new funds  at low rates.
  24. 24. 4. Outlook to 2014 and 2015
  25. 25. 26 Construction 2013 versus 2014 Order Book  ‐  5,000,000  10,000,000  15,000,000  20,000,000  25,000,000  30,000,000  35,000,000  40,000,000  45,000,000  50,000,000 Turnover 2013 Order Book 2014
  26. 26. 27 Key Issues  Low Investor Confidence  Inadequate funding  public sector projects  Private sector = confidence stress  Diminishing funded projects of scale  Sub optimization of resources  Economic decline has adversely affected our  subcontractors and many suppliers
  27. 27. 28 Proplastics Volumes: estimated to grow by 20%  ‐  100  200  300  400  500  600  700 July August September October November December January February March April May June July August September October November December 18 months to 31 December 2011 18 months to 31 December 2013
  28. 28. 29 Proplastics : Key Issues
  29. 29. 30 Platform Prospects: Construction • Masimba strategic positioning on Mining infrastructure is strong and will continue to strengthen this on the back of imminent key government policy reviews • Capacity: strong local and regional partnerships to exploit the huge infrastructure opportunities: Energy, Transport, Water (and also PPP) • Yes the local market is highly fragmented and competitive and yet our key objective is to be the contractor of choice. Masimba is the benchmark in the market. • Buildings: Commercial. Retail and low cost housing
  30. 30. 31 Platform Prospects : Proplastics Our target is to grow the volumes and efficiencies at Proplastics and at the same time ensuring new products arising from continued innovation rises to 15% Irrigation business has shown steady recovery in the last three years and this year’s good Agriculture season will will spur expansion in this sector The commissioning of the new HDPE plant in August 2014 will buttress Proplastics strong positioning in Agriculture and mining markets in Zimbabwe and the region We have seen evidence of the acceleration on improving urban water supply in 2014 and mainly funded by NGO’s and public sector partners In Proplastics wee see a world class and formidable regional piping systems business in two years. We have worked hard in the region and are determined to see a fair share of these markets
  31. 31. 32 Platform Prospects : Proplastics The commissioning of the new HDPE plant will buttress Proplastics strong positioning in Agriculture and mining markets in Zimbabwe and the region In Proplastics wee see a world class and formidable regional piping systems business in two years. We have worked hard in the region and are determined to get a fair share of these markets
  32. 32. We will expand into other key infrastructure materials business in 2014 33 Platform Prospects : New Frontiers The residential property development will be rolled out in 2014 on the back of our land bank . Designs and regulatory issues have been completed. $2 million
  33. 33. 34 We expect major policy changes to happen in 2014 and significant infrastructure projects covering mining , roads, energy and water to kick off in 2015. Growth at Proplastics in 2014 will be buoyed by local and regional urban water supply and supported by exports to the region. Construction will is 2014 focusing on 3 C’s
  34. 34. www.masimbagroup.com

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