Home Afrika, a real estate firm listed on the Growth and Enterprise Market(GEMS) segment of the Nairobi Securities Exchange(NSE), has recorded a net loss of KSh 222.8 Million in H1, 2021 compared to a loss of KSh 243.2 Million over a similar period last year.
The firm’s balance sheet also shrunk to KSh 3.6 Billion from KSh 3.9 Billion in H1, 2020, while Operating Loss widened to KSh 147.9 Million from KSh 131.2 Million at the close of the first six months of 2020.
Home Afrika’s profitability also remained in negative territory, with loss by share declining to KSh 0.45 from KSh 0.49 in H1, 2020.
According to the firm’s Directors, the disruptive effects of COVID-19 continue to hurt the economy and the company.
The shut down of many businesses, loss of jobs and the reduction of disposable income have reduced the uptake of the firm’s properties resulting in a 34% fall in revenue booked for the period ending 30th June 2021 to KSh 28.2 Million, compared to KSh43 Million in H1, 2020.
The firm’s operating loss increased in the six months from KSh113 million in 2020 to KSh 148 million
Home Afrika’s Migaa Golf Estate sales proceeds are treated as current liabilities, amounting to KSh 3 billion as of 30th June 2021.
As the projects are completed, this amount will convert to revenues in the firm’s profit and loss account.
The book value of Home Afrika’s sellable land and other inventory amounted to KSh3.4 billion at the end of H1, 2021.
According to Dan Awendo, Home Afrika MD, the firm will push up its investments in the infrastructure of the various projects to improve their market value.
He added that the board has put in place a turnaround strategy to improve the firm’s performance and create more value for all stakeholders.
Directors of the firm have not recommended any interim dividend payment to shareholders for H1, 2021.