Property developer Home Afrika has fallen into a loss position for the financial year 2015, underlining the challenges the company is going through.
A filing with the Capital Markets Authority (CMA) showed that it recorded a Sh390.1 million after-tax loss as gross sales slumped by 62.2 per cent to Sh259.8 million.
“This was attributed to reduced sale of plots in Home Afrika’s various projects, including Migaa Golf Estate in Kiambu County,” said the company in the statement to the CMA, also copied to the Nairobi Securities Exchange (NSE), on which the firm is listed.
The company said it estimated that it would complete selling and booking revenue from its flagship Migaa Golf Estate project in the next two years.
“This will effectively see about half of the deferred revenue and deposits from sales of plots translate to revenues over the next 12 to 18 months and the rest thereafter,” said the firm.
The NSE-listed property firm has been experiencing financial turbulence since last year. The firm issued a sh 500million bond early last year at an initial offer of a 13.5 per cent coupon rate. The bond however failed to attract enough investors, forcing it to raise the interest rate on the five-year security. Finance costs shot up 10.7 times to Sh52.7 million
The company last year was involved in five major projects valued at over Sh18 billion, with a target of ten projects in the next five years with a turnover of $1 billion (Sh90 billion).
