We have extracted below the Chairman’s Statement from the 2018 abridged report of ICON Properties Plc (ICON.mw), listed on the Malawi Stock Exchange:
ICON Properties Plc was incorporated in Malawi as a private limited company on 4 June 2018.It commenced its activities on 1 November 2018 and therefore had operated for two months in 2018 On 1 November 2018, The company acquired the shareholding of various property companies, namely Kangombe investments limited (75%), Chichiri Shopping Centre Limited (100%), Lilongwe City Mall Limited (100%) and NICO Properties Limited (100%), as well as various direct properties in exchange for shares in ICON Properties plc.
The Company was registered and converted to a public limited company on 8 November 2018, later that month it announced its intention to list its shares on the Malawi Stock Exchange. Following the public offer which closed on 28 December 2018 the Company successfully listed on the Malawi Stock Exchange. The listing of the shares was concluded on 21 January 2019.
Although ICON only operated for a period of two months, the investments held by ICON were in operation for much longer. Average occupancy rate across the property portfolio was above 90% throughout the reporting period. The Company generated total income of K1.44 billion for the two months period which includes increase in fair value of investee companies and properties of K516 million.
Total expenses for the period were at K631 million, the major items included in this figure were pre-listing and listing expenses, property management fee and property operating costs which amounted to K452 million.
The Company reported a profit after tax of K1.28 billion for the two months period ended 31 December 2018.
Trade and other receivables include rental receivables amounting to K924 million, the majority of these were taken on from subsidiary companies through the Company restructuring.
The Directors have not recommended a dividend for the two months period ended 31 December 2018.
The property market continues to remain stable and declining inflation levels may lead to growth in the short to medium term. The Company is poised to maintain good performance throughout the year 2019. The Company will focus on maintaining its occupancy levels, improving its property standards, reducing receivables and actively looking to deploy the IPO proceeds in various property investments.
BASIS OF PREPARATION
The accompanying summary consolidated and separate financial statements have been prepared in accordance with the Malawi Stock Exchange listing requirements for summarized financial statements. The Directors have considered the requirements of the Malawi Stock Exchange and believe that the summary consolidated and separate statements of financial position, comprehensive income, changes in equity and cash flows are sufficient to meet the requirements of the users of the summary consolidated and separate financial statements. The amounts in the summary consolidated and separate financial statements are prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards. The summary consolidated and separate financial statements have been derived from the Consolidated and Separate Financial Statements which were approved by the Board of Directors on 30 July 2019.