Masimba : 2021 FY Financial Results & Audit Report

AUDITED ABRIDGED FINANCIAL RESULTS

For the Year Ended 31 December 2021

Financial Highlights

Revenue EBT EBITDFVA EBITDFVA/Turnover

Basic Earnings Per Share (cents) Diluted Earnings Per Share (cents) Headline Earnings Per Share (cents)

Order book (USD million)

Change

-12%

133%

-41% 197%

PRELIMINARY ANNOUNCEMENT TO SHAREHOLDERS

CHAIRMAN'S STATEMENT

INTRODUCTION

Inflation Adjusted

Historical Cost

2021 Audited

2020 Audited

2021 Audited

ZWL

ZWL

ZWL

87%

87%

-9%

4%

7,355,274,110 1,352,607,769 1,571,853,179 21% 407.66 407.66 342.78

6,019,717,135 1,718,541,452 1,250,483,367 21% 536.00 536.00 214.71 214.00

1,718,541,452 1,250,483,367

• 7,355,274,110 8,390,738,256

• 1,352,607,769 580,477,185

• 1,571,853,179 1,729,386,061

2020 Audited

ZWL

• 6,019,717,135 4,204,426,740

• 751,845,846 The auditors have included a section on key audit matters. The key audit matters were with respect to the revenue recognition

• 562,916,939 and valuation of construction projects.

21% 407.66 407.66 342.78

21% 217.77 217.77 578.61

21% 13%

536.00 243.05 The auditors' report on the consolidated financial statements which form the basis of these financial results is available for

536.00 243.05

214.71 117.60

214.00 72.00

I am pleased to present my report for the financial year ended 31 December 2021. My commentary will be based on the consolidated inflation adjusted financial statements, being the primary set of financial statements as defined by the International Accounting Standard 29: Reporting in Hyperinflationary Economies.

OPERATING ENVIRONMENT

The operating environment was generally stable with decelerating inflation which declined from 348.59% as at December 2020 to 60.74% at December 2021. Though the exchange rate remained stable, the continued delays in the foreign exchange auction system resulted in unintended price distortions in the market. During the financial period, various levels of lockdowns were in effect. The lockdowns, however, marginally affected the operations of the Group as it was classified as an essential service business. Accordingly, the Group continued to run under strict World Health Organisation and Government of Zimbabwe lockdown guidelines during the period.

REVIEW OF OPERATIONS

The contracting business was firm, driven by roads and earthworks, water, housing and mining infrastructure. The works were evenly spread between the public and private sectors. Government's renewed interest in infrastructure development was the key driver of growth for the road and earthworks order book. In addition, the contract periods improved from short term to medium-long term on the back of an improved operating environment.

The Properties segment's strategic focus in the period was the refurbishment of its industrial assets to enhance their earning capacity. As at reporting date, refurbishments for one of the properties in Harare were substantially complete. Plans are underway to refurbish, in the new financial period, other properties in Harare, Bulawayo and Gweru. In addition, a total land bank valued at ZWL398 million (USD3,6 million) was acquired during the year.

The Group established a quarry mining subsidiary, Stemrich Investments (Private) Limited, whose plant was commissioned in the fourth quarter. Its main purpose is the manufacture of stone aggregates which are key in road construction. It is expected that the cost savings associated with this investment will be evident in the next financial period.

FINANCIAL PERFORMANCE

The Group recorded revenues of ZWL7,355 million (2020: ZWL8,391 million) resulting in a decline of 12%. The decline was mainly due to the slow start of some key projects in the fourth quarter of the reporting period. Resultantly, Earnings before Interest Taxes Depreciation and Fair Value Adjustment (EBITDFVA) decreased to ZWL1,572 million (2020: ZWL1,729 million). Notwithstanding the marginal fall in revenues, EBITDFVA to turnover remained firm at 21% (2020: 21%). The proportion of revenue earned in United States Dollars was at 35% (2020: 20%) and this was recorded in the financial records at the prevailing foreign exchange auction rate.

The financial position of the Group strengthened to ZWL11,403 million (2020: 7,454 million) on the back of a deliberate effort by the Board to preserve value through acquisition of property, plant and equipment, key to the Group growth plans. The Group acquired plant and equipment of ZWL766 million (2020: ZWL344 million) and investment property of ZWL398 million (2020: ZWL134 million) during the financial year.

Current ratio declined to 1.07:1 (2020:1.17:1) mainly due to a strategy of minimal cash holding to preserve value in a hyperinflationary environment. Borrowings, to support working capital requirements, increased to ZWL397 million (2020: ZWL121 million).

The Group maintained all its three International Organisation of Standardisation certifications, namely International Organisation for Standardisation (ISO) 9001:2015 Quality Management System, ISO 14001:2015 Environmental Management System, and International Organisation for Standardisation (ISO) 45001:2018 Occupational Health and Safety Management System, in the period under review. However, Lost Time Injury Frequency Rate (LTIFR) declined to 0.5 (2020: Nil) due to minor incidents that occurred in the year. Notwithstanding the setback, the Group continues to pursue its Zero Harm strategy.

CORPORATE SOCIAL RESPONSIBILITY

The Group endeavours to improve the wellbeing of the communities in which it operates, and to that end, as a minimum guideline, general workers are hired from the local communities where the projects are being undertaken. As at reporting date, the proportion of local employees was 64%.

The Group also participated in ensuring food security by supporting the 2021/2022 agriculture season, in particular small scale irrigation schemes in the Manicaland region. Masimba contributed ZWL equivalent of USD100,000 to the National Development Fund towards the procurement of COVID-19 vaccines. In total, the Group expended ZWL22,5 million in support of its various corporate social responsibility initiatives.

The Group further contributes to strengthening communities through education and has partnered the University of Zimbabwe's Faculty of Engineering, the Apprenticeship Board and the Institute of Chartered Accountants of Zimbabwe in honouring and employing the top Civil Engineering students, training Apprentices and Chartered Accountants, respectively. As at 31 December 2021, the Group had 28 (2020: 14) students under these training and development programs.

IMPACT OF COVID-19

The Group continues to follow the Government of Zimbabwe and the World Health Organisation COVID-19 guidelines to protect the welfare of its employees, clients, suppliers and other key stakeholders. In addition, there is a robust COVID-19 Management Committee that includes a medical practitioner. Financing, capital investment and working capital models are also examined on a regular basis as part of the Group's business continuity strategy.

For the period under review, the Group lost 24,552 (2020: 3,087) manhours and incurred direct costs of ZWL18,7 million (2020: ZWL4,8 million) towards compliance with COVID-19 guidelines. We commiserate with those who have lost their loved ones to COVID-19.

The Group COVID-19 Management policy mandates that employees be fully vaccinated to mitigate the effects of the virus on the business. To that end, 99.95% employees had been vaccinated as at reporting date.

While COVID-19 did not materially impact on the Group's liquidity and solvency positions in the current period, it is difficult to assess its impact in the future. The extent of the impact of COVID-19 on the Group's operational and financial performance will depend on certain developments that include the duration and spread of the outbreak, impact on its clients, employees and vendors, all of which are uncertain and cannot be reasonably estimated at this time.

OUTLOOK

We applaud the Government for the continued infrastructure investment drive and its determination to improve the ease of doing business in the country. We, however, take note of the potential impact on our contracting projects of the conflict between Russia and Ukraine on global commodity prices and supply logistics, among others.

The Group has a firm order book, valued at USD214 million (2020: USD 72 million) as at the reporting date, with tenures of between six to eighteen months. The book is evenly balanced between private and public sectors spread over housing, buildings, roads, mining and water infrastructure.

The infrastructure development prospects remain bright as evidenced by a long project pipeline and increased tendering activities. However, the execution thereof may be detracted by the continued foreign currency shortages and pricing distortions. We therefore urge the relevant authorities to pursue macroeconomic stabilisation policies, for the contracting sector, in particular, to contribute to the attainment of the objectives of the National Development Strategy.

Meanwhile, the Group has identified certain opportunities in the region and strategies have been put in place to pursue them, with anticipated close out in the short to medium term.

AUDITORS' OPINION

These financial results should be read in conjuction with the complete set of financial statements for the year ended 31 December 2021 which have been audited by Grant Thornton Chartered Accountants (Zimbabwe) in accordance with International Standards on Auditing (ISAs). The auditors have issued an adverse opinion on the consolidated financial statements with respect to non compliance with International Accounting Standard (IAS) 21 - The Effect of Changes in Foreign Exchange Rates, International Accounting Standard (IAS) 29 - Financial Reporting in Hyperinflationary Economies, and the valuation of investment properties; and property, plant and equipment.

inspection at the Group's registered office.

The engagement partner on the audit resulting in the auditors' report is Farai Chibisa (PAAB No. 0547).

Abridged Consolidated Statement of Profit or Loss for the Year Ended 31 December 2021

Inflation Adjusted

Audited	Audited
31 December	31 December
2021	2020
ZWL	ZWL
Revenue	7,355,274,110 8,390,738,256	6,019,717,135	4,204,426,740
Profit before depreciation and fair value adjustments	1,571,853,179 1,729,386,061	1,250,483,367	562,916,938
Fair value adjustment	384,513,515 43,635,647	721,850,336	262,656,835
Depreciation	(215,260,219) (161,998,341)	(170,294,346)	(67,544,814)
Operating profit	1,741,106,475 1,611,023,367	1,802,039,357	758,028,960
Net interest paid	(98,553,678) (12,987,289)	(83,497,905)	(6,183,114)
Net monetary loss	(289,945,028) (1,017,558,893)	-	-
Profit before tax	3.1 1,352,607,769 580,477,185	1,718,541,452	751,845,846
Tax	3.2 (367,484,191) (54,238,841)	(423,285,339)	(164,516,985)
Profit for the year	985,123,578 526,238,344	1,295,256,113	587,328,861
Number of shares in issue (millions)	241.7	241.7
Basic earnings per share (cents)	536.00	243.05
Diluted Earnings Per Share (cents)	536.00	243.05

Audited 31 December 2021 ZWL

Notes

7,355,274,110 1,571,853,179 384,513,515 (215,260,219)	6,019,717,135 1,250,483,367 721,850,336 (170,294,346)
1,741,106,475 (98,553,678) (289,945,028) 1,352,607,769 (367,484,191)	1,802,039,357 (83,497,905) - 1,718,541,452 (423,285,339)
985,123,578	1,295,256,113
241.7 407.66 407.66	241.7 536.00 536.00

241.7 241.7

407.66 217.77

407.66 217.77

Audited 31 December 2020 ZWL

Abridged Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2021

Inflation Adjusted

Audited	Audited	Audited	Audited
31 December	31 December	31 December	31 December
2021	2020	2021	2020
ZWL	ZWL	ZWL	ZWL
Profit for the year	985,123,578	526,238,344	1,295,256,113	587,328,861
Other comprehensive income:
Gain on revaluation of property, plant and equipment	45,414,820	179,948,984	693,034,016	737,392,440
Movement in available for sale investments	252,193,502	153,671,625	459,409,162	137,277,436
Deferred tax charge on other comprehensive income	(11,106,582)	(53,976,073)	(145,798,362)	(95,0
Other comprehensive income for the period, net of tax	286,501,740	279,644,536	1,006,644,816	779,609,454
Total comprehensive income for the year	1,271,625,318	805,882,880	2,301,912,929	1,366,938,315

985,123,578 45,414,820 252,193,502 (11,106,582) 286,501,740	1,295,256,113 693,034,016 459,409,162 (145,798,362) 1,006,644,816	587,328,861 737,392,440 137,277,436 (95,060,422) 779,609,454 1,366,938,315
1,271,625,318	2,301,912,929

Abridged Consolidated Statement of Financial Position as at 31 December 2021

ASSETS

Property, plant and equipment Investment property Investments

Current assets

Cash and cash equivalents

Contracts in progress and accounts receivable Inventories

Total assets

EQUITY AND LIABILITIES Share capital

Share premium Reserves Retained earningsNon-current liabilities Interest bearing borrowings

Inflation AdjustedAuditedAuditedNotes

31 December 31 December

2021 ZWL

2020 ZWL

DIVIDEND DECLARATION 881,177,254 544,495,477

The Board, having considered the Group's profitability, its future cashflows, and the potential economic impact of COVID-19 on its operations,

has proposed a final dividend for the year ending 31 December 2021 of ZWL41,70 cents per share. This will bring the total dividend to ZWL227,13 (2020: ZWL41,80) cents per share including ZWL185,43 cents per share special dividend-in-specie that was paid during the period.

DIRECTORATE

I am pleased to announce the appointments of Mr. Herbert Stanley Mashanyare and Ms. Cathrine Charmaine Chitiyo who joined the Board as Independent Non-Executive Directors on 12 August 2021 and 18 November 2021, respectively.

Meanwhile, we bid farewell to Mr. Paddy Tongai Zhanda who resigned from the Board effective 4 November 2021. We thank him for the invaluable contribution during his tenure as a Non-Executive Director and wish him the best in his future endeavours.

APPRECIATION

On behalf of the Board, I would like to extend our appreciation to our clients and stakeholders for their continued unwavering support. I extend a special thank you to staff, management and to my fellow Directors for their dedication in these particularly challenging times.

For and behalf of the Board

G. Sebborn

29 March 2022

DIVIDEND NOTICE

Notice is hereby given that the Masimba Holdings Limited Board has declared a final cash dividend for the year ended 31 December 2021 of ZWL41,70 cents per share. The dividend will be payable to Shareholders of the Company registered at the close of business on 14 April 2022. The payment of the dividend will take place on or about 20 May 2022. The applicable shareholders' tax will be deducted from the gross dividends.

The share of the Company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 11 April 2022 and ex-dividend as from 12 April 2022.

BY ORDER OF THE BOARD

Pearl Mutiti

Company Secretary 29 March 2022

Deferred tax 881,177,254 504,115,516

Current liabilities

Interest bearing borrowings Finance lease

Accounts payable

Total equity and liabilities

Abridged Consolidated Statement of Cash Flows for the Year Ended 31 December 2021

Net cashflow generated by operating activities Net cashflow utilised by investing activities Net cashflow generated from/(utilised by) financing activities

Increase in cash and cash equivalents

3.6 5,721,178,539 4,394,659,753

3.7

3.7 3.8

3.3 2,155,790,373 1,578,414,353 2,155,790,373 981,970,161

2,155,790,373 1,431,318,421 149,364,629	2,155,790,373 1,431,318,421 149,364,629
3,736,473,423	3,736,473,423
1,759,455,832 5,721,178,539 185,607,675	1,759,455,832 5,721,178,539 185,607,675
7,666,242,046	7,666,242,046
1,402,715,469	11,402,715,469
105,067,494 39,548,262 1,428,578,359 1,786,729,920	2,416,537 1,006,892 1,478,605,798 1,877,894,808
3,359,924,035	3,359,924,035
- 881,177,254	- 881,177,254
881,177,254	881,177,254
331,299,310 - 6,830,314,870	331,299,310 - 6,830,314,870
7,161,614,180	7,161,614,180
1,402,715,469	11,402,715,469

Historical CostHistorical CostHistorical CostAudited 31 December 2021 ZWLAudited 31 December 2020 ZWL

• 3.4 1,431,318,421 1,431,318,421

• 3.5 149,364,629

648,896,890 403,694,621

260,774,263 149,364,629 162,234,045

• 3,736,473,423 2,488,085,506

  3,736,473,423

• 1,759,455,832 382,425,791 1,759,455,832

185,607,675

189,327,333

5,721,178,539 185,607,675

1,547,898,827

237,916,435 2,734,025,282 59,887,751

7,666,242,046 4,966,412,877 7,666,242,046 3,031,829,468

11,402,715,469

7,454,498,383 11,402,715,469 4,579,728,295

105,067,494 39,548,262

105,067,494 39,548,262

• 2,416,537 2,416,537

• 1,006,892 1,006,892

1,786,729,920 1,877,894,808 3,359,924,035 3,359,924,035

1,428,578,359 1,583,471,993 1,478,605,798 913,356,357 946,761,905 689,412,171

2,674,849,654

- 40,379,961

1,606,191,957

- 25,121,361

• 881,177,254 313,622,588

• 881,177,254 338,743,949

331,299,310 167,359,291 331,299,310 104,118,307

-

66,983 -

41,672

3.9 6,830,314,870 4,067,726,978 6,830,314,870 2,530,632,410

7,161,614,180 4,235,153,252 7,161,614,180 2,634,792,389

11,402,715,469 7,454,498,383 11,402,715,469 4,579,728,295

Inflation Adjusted

Historical Cost

Audited	Audited	Audited	Audited
31 December	31 December	31 December	31 December
2021	2020	2021	2020
ZWL	ZWL	ZWL	ZWL
2,537,181,394	615,874,311	2,377,093,485	330,517,007
(1,145,198,111)	(492,532,971)	(957,507,830)	(228,993,472)
(14,953,242)	173,813,135	101,953,741	124,566,980
1,377,030,041	297,154,475	1,521,539,396	226,090,515

2,537,181,394 ,145,198,111) (14,953,242)	2,377,093,485 (957,507,830) 101,953,741
1,377,030,041	1,521,539,396

Directors: G Sebborn (Chairman), *C Malunga, C C Chitiyo, M M Di Nicola, *A Makamure, H S Mashanyare, M W McCulloch, (*Executive) • Registered Office: 44 Tilbury Road, Willowvale, Harare, Zimbabwe

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1

AUDITED ABRIDGED FINANCIAL RESULTS

For the Year Ended 31 December 2021

_3528

Abridged Consolidated Statement of Changes in Equity for the Year Ended 31 December 2021

Shareholders' equity at the beginning of the year Other comprehensive income

Dividend paid

Profit for the year

Shareholders' equity at the end of the year

SUMMARY OF INFORMATION

1.

BASIS OF PRESENTATION

Inflation Adjusted

Historical CostAudited December 2021 ZWLAudited December 2020 ZWLAudited December 2021 ZWL

2,674,849,654 286,501,741 (586,550,938) 985,123,578	1,606,191,957 1,006,644,816 (548,168,851) 1,295,256,113
3,359,924,035	3,359,924,035

526,238,344 1,295,256,113

Audited December 2020 ZWL

2,674,849,654 1,868,966,774 1,606,191,957 239,253,642

286,501,741 (586,550,938)

985,123,578

279,644,536 -

3,359,924,035 2,674,849,654

1,006,644,816 779,609,454

(548,168,851)

3,359,924,035

- 587,328,861

1,606,191,957

The Group's financial statements have been prepared under the policies consistent with the requirements of the Companies and Other Business Entites Act (Chapter 24:31). The financial statements have been prepared under the current cost covention in accordance with International Accounting Standard 29: Reporting In Hyperinflationary Economies. The principal accounting policies of the Group have been applied consistently in all material respects with those from the previous years. These financial statements have been prepared under the assumption that the Group will continued opertate as a going concern.

2.

IAS 29: REPORTING IN HYPERINFLATIONARY ECONOMIES

These financial statements have been prepared with the aim to comply with the requirements of IAS 29: Reporting in Hyperinflationary Economies. The Group adopted the Zimbabwe Consumer price index ( 'CPI') as a general Price Index to restate transactions and balances. Monetary assets and liabilities and non-monetary assets and liabilities carried at fair value have not been restated as they are presented at the measuring unit current at the end of the reporting period. Items recognised in the income statement have been restated by applying the change in the general price index from the dates when the transactions were initially recorded in the Group's financial records (transaction date). A net monetary adjustment was recognised in the statement of profit or loss for the year ended 31 December 2021 and the comparative period. All items in the statement of cashflows are expressed based on the restated financial information for the period.

The conversion factors used to restate the Group's financial results are as follows:

Date

Index

Conversion factor

31 December 2021

31 December 2020

31 December 2019

3,977.50 1.00

2,474.50 1.61

240.30 16.55

• 3. NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

• 3.6 Contracts in progress and accounts receivables

  Contract receivables and contract work in progress

  Trade receivables

  Prepayments

  Deposits and other receivables

  Less: Allowance for doubtful receivables

  3,902,250,271

  18,048,737

  1,850,650,797

  24,252,832

  5,795,202,637

  (74,024,098) 5,721,178,539

  3,101,018,950

  7,170,662

  1,284,248,978

  6,659,717

  4,399,098,307

  (4,438,554) 4,394,659,753

  3,902,250,271

  5,795,202,637

  (74,024,098) 5,721,178,539

  18,048,737 4,461,044

  1,850,650,797 798,962,689

  24,252,832 4,143,173

  1,929,219,709

  2,736,786,615

  (2,761,333) 2,734,025,282

  The Group's allowance for credit losses is based on a simplified impairment approach in accordance with IFRS 9 - Financial Instruments.

  Inflation Adjusted

  Historical Cost

• 3.7 Interest bearing borrowings

  Audited	Audited	Audited	Audited
  31 December	31 December	31 December	31 December
  2021	2020	2021	2020
  ZWL	ZWL	ZWL	ZWL
  Long term	-	40,379,961	-	25,121,361
  Short term	331,299,310	167,359,291	331,299,310	104,118,307
  331,299,310	207,739,252	331,299,310	129,239,668

  - 331,299,310	- 331,299,310
  331,299,310	331,299,310

  The short-term loans represent a reclassification to current liabilities as per IFRS 7 Financial Instruments: Disclosures. The loans have a tenure of 2 years and accrue interest at an effect rate of 45% per annum. These loans are fully secured against immovable property and a notorial general covering bond over movable assets, including a cession of book debts.

  Up to 1 year

  2 to 5 years

  ZWL

  ZWLTotal ZWL

• 3.8 Finance leases

  Inflation Adjusted 2021

  Minimum lease payments

  Principal

  Interest

  Inflation Adjusted 2020

  Principal

  66,983 66,983

  - -

  66,983 66,983

  3.

  NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS

  The abridged consolidated financial statements are presented in Zimbabwe Dollars, being the functional and reporting currency of the primary economic environment in which the Group operates.

  Inflation Adjusted

  Historical CostAudited December 2021 ZWLAudited December 2020 ZWLAudited December 2021 ZWL

  3.1

  Profit before tax

  Profit before tax is shown after charging/(crediting) the following items: Depreciation

  Staff costs

  3.2

  3.3

  Taxation Current tax Deferred taxTax reconciliation Profit before tax Tax at standard rate Adjusted for:

  Effects of expenses not deductible for tax Effects of other permanent differences Effects of income taxed at special rates

  Property, plant and equipment Movement for the year:

  Balance at the beginning of the year Capital expenditure

  Depreciation

  Carrying amount of disposals Revaluation - recognition on revaluation Depreciation - elimination on revaluation Balance at the end of the year

  215,260,219 498,621,571 (1,529,035) (365,955,156)	170,294,346 395,667,442 (1,529,035) (421,756,304)
  (367,484,191) 1,352,607,769 (334,364,641) (79,697,769) (25,149,782) -	(423,285,339) 1,718,541,452 (442,524,424) (14,789,065) 34,028,150 -
  (367,484,191)	(423,285,339)
  1,578,414,353 765,518,120 (215,260,219) (18,296,701) 45,414,820 -	981,970,161 667,437,862 (170,294,346) (15,921,770) 522,739,670 169,858,796
  2,155,790,373	2,155,790,373

  215,260,219 498,621,571

  Audited December 2020 ZWL

  161,998,341 563,699,736

  • 170,294,346 67,544,814

  • 395,667,442 305,265,061

  (1,529,035) (1,780,181) (1,529,035) (1,107,494)

  (365,955,156) (52,458,660) (421,756,304) (163,409,491)

  (367,484,191) (54,238,841) (423,285,339) (164,516,985)

  1,352,607,769

  580,477,185 1,718,541,452

  751,845,845

  (334,364,641) (143,493,960) (442,524,424) (193,600,305)

  (79,697,769) (53,638,231) (14,789,065) (40,188,951)

  (25,149,782)

  -

  (367,484,191)

  142,893,350 -

  (54,238,841)

  34,028,150 -

  (423,285,339)

  69,272,271 -

  (164,516,985)

  • 1,578,414,353 1,460,821,717 981,970,161 168,880,111

    765,518,120

  • 343,585,059 667,437,862 147,903,112

  (215,260,219) (161,998,341) (170,294,346) (67,544,814)

  (18,296,701) (63,994,082) (15,921,770) (5,201,340)

  45,414,820 -- -

  • 522,739,670 670,388,278

  • 169,858,796 67,544,814

  2,155,790,373 1,578,414,353 2,155,790,373 981,970,161

  Land and buidings were revalued at the end of December 2021 by independent valuers on the open market basis.

  Inflation Adjusted

  Historical Cost

  3.4

  Audited	Audited	Audited	Audited
  31 December	31 December	31 December	31 December
  2021	2020	2021	2020
  ZWL	ZWL	ZWL	ZWL
  Investment property
  Balance at beginning of the year	648,896,890	105,139,067	403,694,621	65,409,584
  Additions	397,908,016	121,564,426	305,773,464	75,628,202
  Fair value adjustments	384,513,515	422,193,397	721,850,336	262,656,835
  Disposals during the year	-	-	-	-
  Balance at end of the year	1,431,318,421	648,896,890	1,431,318,421	403,694,621

  648,896,890 397,908,016 384,513,515 -	403,694,621 305,773,464 721,850,336 -
  1,431,318,421	1,431,318,421

  Total investment property of ZWL1,022,873,947 was valued by an independent valuer as at 31 December 2021, whilst the residual was valued by directors' using similar factors applied by external valuers.

  Inflation Adjusted

  Historical Cost

  3.5

  Audited	Audited	Audited
  31 December	31 December	31 December	31 December
  2021	2020	2021	2020
  ZWL	ZWL	ZWL	ZWL
  Investments
  Financial Assets carried at fair value through
  other comprehensive income	149,364,629	260,774,263	149,364,629	162,234,045
  149,364,629	260,774,263	149,364,629	162,234,045

  Audited

  149,364,629	149,364,629
  149,364,629	149,364,629

  Historical cost 2021

  Minimum lease payments Principal

  Interest

  Historical cost 2020

  Principal

  Finance leases were fully paid at reporting date.

• 3.9 Accounts payable

  Trade

  Unearned revenue (Advance receipts from customers)

  Contract accruals and other payables Tax liabilities

  Subcontractor liabilities

• 3.10 Contingent liabilities

  Bank guarantees on construction contracts in respect of performance, advance payments, retentions and bids.

• 4. Going concern

  Inflation Adjusted

  41,672 41,672

  - -

  Historical Cost

  41,672 41,672

  Audited	Audited	Audited	Audited
  31 December	31 December	31 December	31 December
  2021	2020	2021	2020
  ZWL	ZWL	ZWL	ZWL
  57,347,252	71,440,261	57,347,252	44,444,733
  1,580,003,924	115,702,095	1,580,003,924	71,981,102
  4,271,877,277	2,604,311,965	4,271,877,277	1,620,206,149
  1,538,540	2,005,137	1,538,540	1,247,446
  919,547,877	1,274,267,520	919,547,877	792,752,980

  6,830,314,870 4,067,726,978 6,830,314,870 2,530,632,410

  57,347,252 1,580,003,924 4,271,877,277 1,538,540 919,547,877	57,347,252 1,580,003,924 4,271,877,277 1,538,540 919,547,877
  6,830,314,870	6,830,314,870
  597,009,381	597,009,381

  597,009,381

  858,591,155

  597,009,381

  858,591,155

  The Directors have assessed the ability of the Group to continue operating as a going concern and believe that the preparation of these financial statements on a going concern basis is still appropriate.

• 5. COVID-19

  Management has considered the consequences of COVID-19 and other events and conditions, it has determined that the event and conditions do not create a material uncertainity that casts significant doubt on the entities' ability to operate as a going concern. The extent of the impact of COVID-19 on the Group's operational and financial performance will depend on certain developments including the duration and spread of the outbreak, impact on customers, employees and vendors all of which are uncertain and cannot be reasonably estimated at this time.

Directors: G Sebborn (Chairman), *C Malunga, C C Chitiyo, M M Di Nicola, *A Makamure, H S Mashanyare, M W McCulloch, (*Executive) • Registered Office: 44 Tilbury Road, Willowvale, Harare, Zimbabwe

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