Home Afrika Limited’s Turnaround Continues: Losses Decrease to Kes 51M by June 2023
- What are the key measures taken by Home Afrika Limited to reduce its losses and optimize its operations?
- Home Afrika Limited has taken several steps, including decreasing expenses by undertaking organizational restructure, debt restructuring and negotiations with lenders to reduce finance costs, and increasing marketing and selling efforts. They are also working on innovative, low-cost methods of operating business that can yield higher returns, and exploring new revenue-generating opportunities.
Summary of Key Points
- The company continues its turnaround with losses decreasing from Kes 55M in 2022 to Kes 51M by June 2023.
- Expenditure on marketing and selling activities has increased, which has resulted in higher sales.
- Revenue from sales is expected to be reported once payment completion is achieved and titles are issued.
- Successful negotiations and debt restructuring with lenders have significantly reduced finance cost from Kes 11M to 2M.
- The company anticipates a notable reduction in obligations due to repayment efforts.
- Decrease in administrative expenses from Kes 55.8M to Kes 37.3M due to organizational restructuring.
- Continued efforts to innovate and operate business in low-cost ways to yield higher returns for investors.
- The board and management are actively looking for opportunities that will bring additional revenue to the organization and discussing with strategic partners.
- Projects completion and handing over to individual investors and their respective management companies is also expected.
- Confidence in Home Afrika’s long-term strategy remains strong among the board members.
Useful links
- Home Afrika Limited (HAFR.ke) HY2023 Interim Report
- Home Afrika Limited on AfricanFinancials
- Corporate Website
About Home Afrika Limited (HAFR.ke)
Home Afrika Limited is a property development company which provides quality, sustainable and affordable housing for communities in Kenya and other countries in the East Africa sub-region. These include housing developments in golf estates and services hotel apartments. The company implements housing projects which have a long-term positive impact on society and achieves this through alliance partnerships with government, private sector and development partners. Home Afrika Limited designs, constructs and maintains residential and commercial buildings which comply to a regulatory framework for sustainability and conformity. Home Afrika Limited has implemented a regional expansion plan under the name “Go Country” and “Go Africa” which aims to build approximately 1 million homes under a mass housing programme which spans Africa sub-regions. Home Afrika Limited is listed on the Nairobi Securities Exchange
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