Home Afrika Limited announced results for the half year ended 30st June 2015 with the following highlights:
Home Afrika Limited noted a drop in their revenues by up to 60.60% in their HY results to KES 216.84 Mn in 2015 as compared to KES 550.42 Mn in the previous year. A further 32.65% drop in the cost of sales was registered to KES (219.82) Mn as compared to KES (326.38) Mn in the previous year.
Gross profit declined to KES (2.98) Mn from KES 224.04 Mn as at the same time in 2014, representing a 101.33% drop.
Furthermore, loss for the period stood at KES -111.91 Mn, a 264.02% decline from the KES 68.23 Mn as at 2014. The total comprehensive loss for the period was down 375.35% to KES -118.15 Mn.
The company declared a loss per share amounting to KES (0.28) as compared to an earnings per share amounting to KES 0.08 as at 2014.
The much awaited Migaa project phase 1 Mitini Scapes units were completed in July 2015, with project handover currently ongoing to homeowners. Further infrastructural improvements are being undertaken in line with this.
However, the main challenge remains the uptake for the other development projects that Home Afrika is keen on undertaking. With enhanced competition prevalent throughout the country, there is a need to reflect on upcoming developments based on high end markets as the current environment has been watered down. With interest rates set to edge up in December when the Kenya Bankers Reference Rates (KBRR) is set to be raised in tandem with the Central Bank Rate (CBR), there is bound to be less appetite for mortgage uptakes, which would impact the general real estate segment.
With the termination of the contract for the Chief Executive Officer, Njoroge Nganga, having taken place, there is renewed hope that a new management approach towards the running of the firm would inject better foresight into the vast array of projects being undertaken in the future.