News Column

Home Afrika's Half-Year Profit Slides By 262 Percent

September 2, 2014

Constant Munda

HOME Afrika, the only listed real estate developer, suffered a 262.5 per cent decline in half-year net profits on increased sales and administrative costs, it announced yesterday.

The firm said net earnings stood at Sh42.9 million, a deep drop from Sh155.5 million in the first half of 2013. It blamed it on a 95.2 per cent rise in cost of sales to Sh326.4 million and 89.4 per cent jump in administrative expenses to Sh125.6 million.

Chief executive Njoroge Nganga said the firm's deferred income now stood at Sh662 million up from Sh313 million previously. "The company's business is anchored on a significant long term growth trajectory," he said.

Njoroge was optimistic that Home Africa's applicator to the Capital Markets to raise undisclosed capital through a bond issue would be approved by end of next month.

A successful cash haul would be spend on the ongoing developing multi-billion shilling Migaa project in Kiambu , Lakeview Heights in Kisumu and Llango in Kwale.

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Source: AllAfrica

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