Home Afrika CEO Njoroge Ng’ang’a. Photo/Salaton Njau
What you need to know:
The firm attributes the drop to changes in accounting policies that resulted in lower valuation gains on investments in line with international financial reporting standards.
Real estate developer Home Afrika has reported a 25.4 per cent net profit drop to Sh80.6 million in the company’s first full-year announcement since listing at the NSE in July last year.
Company CEO Njoroge Ng’ang’a attributed the drop to changes in accounting policies that resulted in lower valuation gains on investments in line with international financial reporting standards.
Home Afrika’s share price has more than halved since its listing on the NSE’s Growth and Enterprise Market Segment at Sh12, but Mr Ng’ang’a said upcoming projects would boost its performance.
The developer is banking on its flagship Migaa Housing project in Kiambu which so far has recorded sales worth Sh1.5 billion and is projected to be complete by 2016.
“The company projects are valued at over Sh20 billion and expects to implement at least 10 new major projects in the next five years,” said the company.
The developer earned revenue of Sh650.6 million last year, up from Sh348.6 million in 2012. The company is seeking capital to finance upcoming projects through a Real Estate Investment Trust (REIT) and loans from international lenders.
‘‘We have already applied for the approval from the Capital Markets Authority (for the REIT),’’ said Mr Ng’ang’a.
Home Afrika is currently developing other projects among them Lakeview Heights in Kisumu and Llango in Kwale.
The company last year became the first company to be listed on the GEMS segment of the Nairobi bourse. The segment targets SMEs.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
