Home Africa issues a profit warning
The property developing firm Home Africa has issued a profit alert for the 2018 full year results. According to the company’s board of directors, their preliminary assessment shows that the December 2018 earnings will be at least 25% lower than December 2017 earnings.
Home Africa recorded a KSh181 million net loss in 2017 financial results. Therefore 2018 results are expected to be greater losses beyond KSh226 million.
In April, the real estate company requested for an extension of the reporting deadline from 30th April to 31st July. At the time, the CEO of Home Africa Dan Awendo said, “The firm went out to seek ways of strengthening the capital base of the company to achieve its strategic objectives and a number of interests are currently under consideration. These efforts will have an impact on the financial statements and requisite disclosures…”
Home Africa blames the poor financial results on slow growth in the real estate sector largely caused by limited access to credit and a general decline in spending power among property buyers.