Nairobi Securities Exchange listed Real Estate company, Home Afrika Ltd (HAFR) has cut its full year 2016 losses by 56 percent to Sh 168.5 Million compared to a loss of Sh 390 Million reported over the same period in 2015.
The group reported a decline in revenue of 15% from Shs 260 million in 2015 to Shs 222 million in 2016, cost of sales reduced by 31% from Shs 233 million in 2015 to Shs 160 million in 2016.
Operating expenses fell by 57% to Sh 152 Million from Sh 350 Million in the previous year.
Completion rate of the company’s flagship Migaa Golf Estate project increased to 43.16% in 2016 from 40% in 2015. This comes after the company injected an investment of Shs 158 million in the project and most of funds were spent on kick-starting roads construction in the project.
“The deferred revenue & deposits from sales of plots grew from Shs 1.8 billion in 2015 to Shs 2 billion in 2016. In line with our accounting policy, these amounts are carried as current liabilities in the balance sheet but will over the next two years convert to revenues as we increase the investment in the projects and thereby increase the rate of percentage of completion.” Its said in a statement.
The loss making company also noted that the process of fundraising that was approved by shareholders during the Annual General Meeting in May 2016 had so far progressed very well.
“We are hopeful that this process will be successfully concluded and the funding committed to by strategic and other investors by the end of 2017.” it added.