Home Afrika cuts loss to Sh168.5 million as costs fall

Houses by Home Afrika at Migaa Estate in Kiambu. FILE PHOTO | JEFF ANGOTE | NMG 

By MUGAMBI MUTEGI

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Summary

• Home Afrika says its revenues for the 12 months to December went down by 15 per cent to Sh222 million.
• Following restructuring measures, its operating expenses fell to Sh152.1 million from Sh390 million in 2015.

Property developer Home Afrika

has cut its full-year net loss by 56.8 per cent to Sh168.5 million as lower operating expenses helped offset the impact of declining revenues.

The company, which posted a net loss of Sh390 million in 2015, has announced that its revenues for the 12 months to December went down by 15 per cent to Sh222 million.

Following restructuring measures implemented last year, the NSE-listed firm recorded operating expenses of Sh152.1 million, a sharp decline from the previous year’s Sh349.9 million bill.

Home Afrika's cost of sales also dropped 31 per cent to Sh160 million.

“The improved financial performance demonstrates the effect of cost reduction measures initiated by management in 2016 as part of the restructuring exercise as well as renewed focus on profitable sales,” the firm said in a statement.

“The group improved the percentage of completion, especially at its Migaa Golf Estate project, to 43.16 per cent in 2016 from 40 per cent in 2015.”

Home Afrika expects that the average project percentage of completion, which determines how much deferred revenue is booked as sales in the group, will continue increasing over time.