Masimba seeks approval for a 10% share buyback

Published: 11 June 2026

Construction and engineering firm Masimba Holdings Limited is seeking shareholder approval to repurchase up to 10 percent of its issued ordinary shares, a move that comes against the backdrop of improving profitability, solid liquidity and a strong project pipeline supporting future growth.

The proposal will be tabled for consideration at the company's annual general meeting (AGM) scheduled for June 30.

If approved, the authority will remain effective until the next AGM or for a maximum period of 15 months from the date of the resolution, whichever comes first.

According to the AGM notice, shareholders will be asked to consider a special resolution authorising the company, in terms of Section 129 of the Companies and Other Business Entities Act and the Zimbabwe Stock Exchange (ZSE) listing requirements, to purchase its own ordinary shares.

Masimba said any share repurchases would only be undertaken after the board has assessed the company's financial position and is satisfied that it can continue to meet its obligations, maintain adequate working capital and preserve a healthy surplus of assets over liabilities.

The company indicated that any repurchased shares must be acquired at a price not exceeding 5 percent above or below the weighted average market price of its shares on the ZSE over the five business days immediately preceding the transaction.

"The maximum number of shares authorised to be acquired shall not exceed 10 percent of the company's issued ordinary share capital," the company said.

In addition to the share buyback proposal, shareholders will consider the adoption of the group's financial statements for the year ended December 31, 2025, approve directors' remuneration, re-elect two directors and confirm a final dividend of US$0.34 per share.

The company will also seek shareholder approval to commence a tender process for the appointment of a new external auditor in compliance with statutory auditor rotation requirements.

The proposed buyback comes as Masimba continues to post strong financial results.

For the year ended December 31, 2025, group revenue increased by nearly 10 percent to US$61.5 million, driven largely by growth in housing development projects and an expanding presence in the private sector.

The company said its strategy of broadening its private sector footprint helped reduce reliance on public sector contracts, with private sector contributions to revenue rising to 56 percent from 46 percent in the previous year.

The improved revenue mix strengthened cash flows and positioned the group for continued growth, a trend reflected in its first-quarter performance for the period ended March 31, 2026.

"The group delivered a strong and resilient performance during the period under review, reflecting continued operational efficiency, disciplined project execution, and the strength of its diversified project portfolio," Masimba said in its trading update.

Revenue for the first quarter rose 13 percent to US$8.8 million compared to the corresponding period last year, while profit after tax increased 12 percent to US$453,000.

The company noted that the performance was achieved despite prolonged rainfall that disrupted operations and created difficult construction conditions across several projects.

"Nevertheless, the group's project teams demonstrated strong adaptability, effective planning and solid execution capabilities, enabling projects to continue progressing efficiently under the circumstances," the company said.

Masimba added that its order book remains robust, supported by a balanced mix of public and private sector projects that provide visibility and a strong foundation for sustained growth.

The group's liquidity position also remained stable during the quarter, with a current ratio of 1.42 and a quick ratio of 1.26, compared to 1.41 and 1.26 respectively in the prior period.

The proposed share repurchase programme is likely to be viewed as a vote of confidence by management in the company's long-term prospects, while also providing an additional mechanism for enhancing shareholder value.

With a healthy balance sheet, growing revenues and a strong pipeline of projects, Masimba appears well-positioned to capitalise on opportunities in Zimbabwe's infrastructure, construction and property development sectors.
- newsday

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