Home Afrika sends investors profit warning

Real estate developer Home Afrika has issued a profit warning for the year ending December 2013, indicating that the company will announce at least a 25 per cent decline in earnings compared to the previous year.

The Nairobi Securities Exchange-listed firm attributed the expected fall in profit to a restating of its accounts in line with International Financial Reporting Standards.

The profit alert means the firm expects to earn a maximum net profit of Sh125.7 million, representing a 25 per cent decline from Sh167.6 million posted in 2012.

“The projected profit ... will be lower by 25 per cent compared with the net earnings of the prior year owing to re-allocation of substantial revenue that was previously recognised as income, to deferred income on the balance sheet,” Home Afrika said in a statement.