Home Afrika Group, a property development company listed at the Nairobi Securities Exchange (NSE) slid deeper into losses in 2019 making a KSh888.8 million net loss. The company posted a KSh 346.2 million net loss in 2018.
The group attributes this poor performance to the depressed valuation of its inventories in the form of land and uncompleted houses, which contributed up to KSh 391 million of the loss.
Home Afrika’s operating losses widened to KSh 632 million from KSh 231 million in 2018.
The group, listed on the Growth Enterprise Market Segment (GEMS) at the Nairobi Securities Exchange saw its balance sheets shrink from KSh 4.5 Billion to KSh 4.3 Billion in 2019.
The Group expects the Migaa Golf Estate, a flagship undertaking, to realize profitability in 3-4 years’ time.
The book value of the group’s sellable land and other inventory stood at KSh 3.5 Billion in 2019.
“We continue to invest in the infrastructure of the various projects which will help improve the market value of the land bank as the land becomes more desirable,” said Dan Awendo, Home Africa Managing Director.
Home Afrika says it has put in place measures to ensure that the company returns to profitability sooner rather than later.
It has reworked on the marketing strategy to include deep engagement in digital marketing and diaspora marketing. To improve liquidity, the company has introduced new revenue streams including sale and agency arrangements for 3rd party properties and property management.
Substantive cost reduction measures are also being enforced. The board of Home Afrika is also in the process of identifying assets that can be sold to raise cashflows.
The directors do not recommend a dividend for the period ending 31st Dec 2019.