Masimba Holdings Limited (MSHL.zw) HY2019 Interim Report

We have extracted the Chairman’s Statement from the 2019 half year report for Masimba Holdings Limited (MSHL.zw), listed on the Zimbabwe Stock Exchange:

INTRODUCTION

On behalf of the Board, I am pleased to present to you the interim results for the six months ended 30 June 2019. I wish to bring to the attention of the stakeholders the change in functional and reporting currency from United States Dollars (US$) to Zimbabwe Dollars (ZWL$) as a result of the promulgation of Statutory Instrument 33/2019 on 21 February 2019. Resultantly, opening balances were restated at an exchange rate of ZWL$2,50:US$1 and at the closing period, the rate was at ZWL$6,31. The comparative figures have been stated based on the US$ to ZWL$ exchange rate of 1:1. Consequently, the financial performance for the period under review is not directly comparable to the performance and financial position for the period ended 31 December 2018.

OPERATING ENVIRONMENT

The period under review remained highly volatile for business operations as characterised by significant policy changes in a market faced with foreign currency shortages, tight liquidity and high inflation. Annual inflation reached 175.66% in June 2019 and the Government has discontinued publishing the year on year inflation statistics, a phenomenon that will make measurability of performance very difficult. The Government of Zimbabwe, through Statutory Instrument 142/2019 issued on 24 June 2019, introduced the ZWL$ as the sole legal tender for trading and settlement for domestic transactions.