Home Afrika Group reported a 62% decrease in Loss After Tax of KSh 340.3 Million for the period ended 31st December in 2020, down from a Net Loss of KSh KSh 888.8 Million in 2019.
The Group reported a 1,3445 increase in its gross profit for the year ending 31st December 2020 compared to the same period in 2019, from KSh 3.6 Million to KSh 52.4 Million.
Home Afrika financials
Home Afrika Group operating loss reduced from KSh 631,966, 263.00 in 2019 to KSh 119,016,370.00 in 2020, with the balance sheet size growing from KSh 4.3 Billion to KSh 4.4 Billion during the period under review.
Actual sales, not adjusted for the percentage of completion, increased 4% during the year from KSh 645 Million in 2019 to KSh 672 Million in 2020.
Growth of actual sales by the Group happened despite a depressed economic environment and significant adverse effects of the Covid-19 pandemic.
In addition to growth in actual sales and gross profit, the Group has reported a 62% decrease in loss before tax for the period ending Dec 31s 2020 of KSh 338 Million down from KSh 887 Million posted in 2019.
Migaa Golf Estate, being a long-term project, is expected to realize its profitability at the end of the project, which is in 3 – 4 years.
Sales proceeds of this project are carried in the balance sheet as current liabilities both as deferred income and as deposits from sales of plots, both now grossing KSh 3.1 Billion as of 31st December 2020 compared with KSh 3 Billion for the same period in 2019.
The book value of the Group’s sellable land and other inventory stood at KSh 3.6 Billion in 2020.
“We continue to invest in infrastructure of the various projects, especially our main project, Migaa Golf Estate, which will help improve the market value of the land bank as the land becomes more desirable,” said Dan Awendo, Managing Director, Home Afrika Group.
The Directors do not recommend a dividend for the period ending 31st Dec 2020.