CONSTRUCTION group Masimba Holdings Limited is seeking shareholder approval to repurchase up to 10% of its issued ordinary shares, a move that comes as the company reports improving profitability, stronger liquidity, and a robust order book supporting future growth.
Shareholders will vote on the proposal at the group’s annual general meeting (AGM) scheduled for June 30.
If approved, the authority will remain in force until the next AGM and will not extend beyond 15 months from the date of the resolution.
Directors said any repurchases would only be undertaken after considering the company’s ability to meet its obligations, maintain adequate working capital and preserve a surplus of assets over liabilities.
In an AGM notice, Masimba said shareholders will consider and, if deemed fit, pass with or without modification, a special resolution authorising the company, in terms of section 129 of the Companies and Other Business Entities Act (Chapter 24:31) and the Zimbabwe Stock Exchange listing requirements, to purchase its own ordinary shares.
The company said the repurchases must not be made at a price greater than 5% above or below the weighted average market price at which the shares trade on the Zimbabwe Stock Exchange, as determined over the five business days immediately preceding the date of repurchase.
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It added that the maximum number of shares authorised to be acquired shall not exceed 10% of the company’s issued ordinary share capital.
Other items on the AGM agenda include the adoption of the group’s 2025 financial statements, approval of directors’ fees, the re-election of two directors, and confirmation of a final dividend of US$0,34 per share.
The company will also seek approval to initiate a tender process for the appointment of a new external auditor in line with statutory rotation requirements.
Masimba’s share buyback proposal comes amid strong financial performance, with group revenue for the year ended December 31, 2025, rising by nearly 10% to US$61,5 million, driven largely by growth in housing development projects.
This followed the group’s strategic focus on expanding its private sector footprint to gradually balance its public sector exposure, with private sector contribution rising to 56% from 46% in the prior year.
As a result, the group improved its cash flow position and laid a solid foundation for continued growth, as 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.
“Revenue for the quarter grew by 13% compared to the same period in the prior year to US$8,8 million, while profit after tax increased by 12% to US$453 000.”
Masimba said performance was achieved despite incessant rainfall that created challenging operating and 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.
It added that its order book remains robust, supported by a healthy mix of private and public sector projects, providing a strong platform for sustained growth.
At the end of the quarter, group liquidity remained stable, with a current ratio of 1,42 and a quick ratio of 1,26, slightly improving from 1,41 and 1,26 in the prior period.