Home Afrika Registers Loss of KES 259 Mn

Home Afrika Limited has reported a drop in revenue in the year 2015 and the corresponding cost of sales to 259 million shillings from 687 million shillings and 233 million shillings from 447 million shillings representing a 62% and 48% reduction respectively from a comparative period the previous year.

The corresponding profitability also reduced from a profit of 8.9 million shillings to a loss of 390 million shillings. This was attributed to reduced sale of plots in Home Afrika’s various projects, including Migaa Golf Estate, the premier golf estate development in Kiambu County.

The average projects’ percentage of completion, which determines how much deferred revenue is booked as sales of the group, stood at an average of 40 percent. As the percentage of completion increases over time, the sales booked as deferred revenue will be gradually transferred into the group’s profitability statement.

There was also an increase in finance costs by 120 million shillings due to the effect of the private placement financing and cessation of capitalizing of interest at the now completed Mitini Scapes development, another of Home Afrika’s project located inside of Migaa Golf Estate.

The deferred income & deposits from sales of plots grew from 1.7 billion shillings in 2014 to 1.8 billion shillings in 2015.

Change of the Board

On 27th April this year, the troubled firm announced changes with its board of directors. The statement released said that Dr. Mbira Gikonyo, Mbugua Kamau, Lucy Maina, Yagah Kithinji, Jane Adam, Paul Nguru and Doris Murimi have resigned from the directorship of the company. Mr. Lee Karuri will be resigning as the Board Chair and Director at the upcoming AGM in June. Linus Gitahi, Peter Nduati and Rachel Mbai have been appointed as Directors of the company.

Delayed announcement

The firm had written to the Capital Markets Authority seeking approval to delay the announcement of its financial results something that raised eyebrows. Home Afrika becomes the second firm to announce losses out of the blues after the National Bank of Kenya.