We have extracted the Chairperson’s Statement from 2019 half year interim report for MPICO Limited (MPICO.mw), listed on the Malawi Stock Exchange:
The Board is pleased to announce the results of the Group for the half year to 30 June 2019. Rental income for the period increased to MK3.13 billion from MK2.86 billion in June 2018 representing an increase of 9%. Fair value for the period increased to MK2.99 billion from MK2.55 billion. Other income went down to MK464 million from MK1.76 billion in June 2018. The major component of other income is interest. Interest income for the Group that is charged on arrears was below last year by 68% due to a significant payment that was made by a major tenant towards debts. There was no exchange gain in the current period (2018: MK434 million). Total expenditure for the period slightly decreased to MK1.9 billion from MK2.0 billion in June 2018. Last year’s expenses included discounting costs of promissory notes. The Group profit after tax for the half year decreased to MK3.6 billion from MK3.8 billion in the corresponding period in 2018, representing a decrease of 5%. This was as a result of the aforementioned reduction of other income.
The Board of Directors has resolved to declare an interim dividend of MK229.8 million representing 10 tambala per share (2018 – MK206.8 million representing 9 tambala per share). This dividend will be paid on 18 October 2019 to members whose names appear in the register as at the close of business on 4 October 2019.
Gross Domestic Product (GDP) growth for 2019 is projected at 5.0%, up from 4.0% in 2018 largely due to expected higher agricultural output. Further improvements are expected in power supply and continued macro-economic stability. The Board has in place strategic plans to ensure that the Group’s good performance is sustained and therefore is very optimistic about the future.
By order of the Board.