We have extracted the Chairman’s Statement from the 2019 abridged report of MPICO Limited (MPICO.mw), listed on the Malawi Stock Exchange:
Review of the results
The MPICO Plc Board is pleased to announce the results of the Group for the year ended 31 December 2019. Rental income increased by 7% to MK6.6 billion in 2019 from MK6.2 billion in 2018. The increase is mainly attributable to rent reviews. Total expenditure for the year decreased to MK4.0 billion in 2019 from MK4.3 billion in 2018 due to savings on finance costs, discounting costs on promissory notes and impairment on Plant and Equipment.
Profit after tax increased to MK7.6 billion in 2019 from MK6.8 billion in 2018, representing a year-on-year increase of 12%. Government rent arrears worsened to K5.8 billion from K2.3 billion in 2018 and continued to negatively impact the company’s operations.
Following the nullification of the May 2019 Presidential elections, and the rescheduling of presidential polls to May 2020, we expect that there will be pressure on the government fiscal budget and which may affect its operations and fiscal commitments.
The Group has adaptive strategic plans to ensure that its stakeholders are provided with relevant property solutions and that shareholders continue to enjoy growth in the value of their investment.
The Directors recommend a final dividend of MK344.7 million (2018: MK310.2 million) in respect of 2019 profits making a total dividend of MK574.5 million for the year (2018: MK517.0 million). This represents 25 tambala per share (2018: 22.5 tambala per share). An interim dividend of MK229.8 million was paid in September 2019 (2018: MK206.8 million).
The final dividend will be paid after the Annual General Meeting planned for June 2020.
By order of the Board.
Damien Kafoteka Edith Jiya
MANAGING DIRECTOR CHAIRPERSON