Home Afrika Group, a real estate firm listed on the Nairobi Securities Exchange(NSE), narrowed its net losses to KSh 281.5 Million for the year ended 31st December 2021.
In the prior year, Home Afrika made a net loss of KSh 340.3 million, which is a decrease of 17%.
The Group’s Gross Profit increased by 204%, from KSh 52.4 Million to KSh 159.5 Million during the periods under review.
Home Afrika records a significant rise in Revenue
Home Afrika Group reported a 30% growth in revenue for the year ending 31st December 2021 compared to the same period in 2020.
The Group’s Actual sales, not adjusted for the percentage of completion, for 2021 were KSh 570Million.
Growth of reported revenue by the Group as a result of the registration of more leases and an increase in the percentage of completion for the Migaa project, from 54.5% in 2020 to 59.8% in 2021.
This came against all odds faced by the industry in general in the wake of a depressed economic environment.
Home Afrika Group deferred income and deposits from sales of plots both grossed at KSh 3.2 billion as of 31st December 2021 compared with KSh 3.1 billion for the same period in 2020.
Directors expect this amount to convert to gross revenues in the Group’s profitability statement as the completion percentage of the project continues to improve from the current 59.8% over the next couple of years.
All expenses except the cost of sales and commissions are usually expensed in the current period.
The book value of all the Group’s sellable land and other inventory stood at KSh3.6 billion in 2021.
Home Afrika says it continues to invest in infrastructure of the various projects, especially its main project, Migaa Golf Estate, which will help improve the market value of the land bank as the land becomes more desirable.
Home Afrika Board of Directors maintains that it has put measures to ensure the company turns around. A turnaround Committee has been constituted. The committee has been mandated to look into Debt Restructuring, Business Continuity, Organizational Restructuring, and Check on the operations Control Systems.
With the above strategy and relaxed Covid 19 restrictions, the board is confident of improved Group’s performance and creating value for all stakeholders.
Shareholders of the company will not receive any dividends for the period ending 31st Dec 2021.
The financial statements of Home Afrika Group were approved by the Board of Directors and signed on its behalf by Jayne Nyokabi- Ag. Managing Director and Mbugua Gecaga- Director.