Nairobi Securities Exchange GEMS listed Property developer Home Afrika Ltd has said it expects its Full Year 2015 profit to fall by at least 25 per cent compared to 2014.The firm says its profit will be hurt by an increase in financing costs for its ongoing real estate projects.
The developer now becomes the sixteenth listed firm to issue a profit warning for the year ended 2015.
Despite the profit alert,its share price has surged by 62.96% since December 2015 which could be attributed to the news on the completion of its Flagship housing residential project, Mitini Scapes Housing Development and handing over to home owners has already began.
The group says that it has also increased its marketing efforts to achieve sale of the private developer sites at each of the projects and also to sell the remaining units at the now completed Mitini Scapes Housing Development project. We have also taken measures to further grow shareholder’s value by diversifying our revenue streams to cushion the company against short and medium term profitability and cash flow gaps. These include venturing into selling agency business on select property projects and contracts for managing facilities & other properties in the coming year. The Board of Directors and Management remain confident of the substantial underlying long term value and profit generation potential of the group in addition to the potential output now and in it’s restructured form.