Real estate firm announces 25pc decline in profit
What you need to know:
- The firm recorded an after tax profit of Sh80.6 million for the period, compared with Sh108.1 million recorded in 2012.
- He said income from Migaa housing development in Kiambu county has, for instance, been deferred as it is only 33 per cent complete although most of the housing units have been sold.
Home Afrika has posted a 25 per cent drop in profitability for the full year ending December 2013 on account of a change in accounting policy.
The firm recorded an after tax profit of Sh80.6 million for the period, compared with Sh108.1 million recorded in 2012.
“The fall in net profit is a result of a decision to conform to a new accounting principle that is international,” chief executive officer Njoroge Ng’ang’a said.
The listed real estate company recorded an 87 per cent revenue growth to Sh650.5 million, up from Sh348.6 million recorded in 2012. The new policy compels the firm to re-allocate revenue previously recognised as income, to deferred income, on the balance sheet.
He said income from Migaa housing development in Kiambu county has, for instance, been deferred as it is only 33 per cent complete although most of the housing units have been sold.
