I am delighted to present my first statement to the shareholders since being elected chair of the boards of Real Estate Investments Plc (REIZ) and its subsidiaries (collectively, the group) in February 2015 following the untimely death of Timothy T. Mushibwe. I am grateful to my colleagues on the board for the confidence they have shown in me in electing me chair.
The year ended 31st December 2015 was a difficult one. Annual inflation was contained at around 7% during the first nine months of the year but had by December shot up to 21.1%. The economy, which had been projected to grow at 7%, only realized a 3.5% growth. The Kwacha suffered a 72% devaluation during the year due in part to global fall in commodity prices. Electricity supply disruptions adversely affected economic output. Poor rainfall patterns will significantly affect the 2016 crop harvest.
Despite global and national challenges outlined above, I am pleased to report, as the financial reports show, that the group posted outstanding results in the year under review. Its operating profit rose to K34.2 million, up 48% from the 2014 figure. This is backed by a revenue increase of K15.7 million representing a 38% improvement…
The economy is forecast to grow by a modest 3.7% in 2016 due largely to anticipated continued electricity deficits, a slump in global demand for commodities and poor agricultural output as a result of erratic rains….
William P. Saunders, a director of REIZ for 11 years, retired from the board at the Annual General Meeting (AGM) held on 26th March 2015, not having sought re election. David Chewe and Jacob M. Njovu were at the same meeting elected to the board.
Robin P.S. Miller, chief executive officer of REIZ for 19 years, left the group on 30th June 2015. The board acknowledges the invaluable contributions to the growth of the company that Late Timothy Mushibwe, Robin Miller and William Saunders made during their tenure. Sydney F. Popota, the chief financial officer, is acting chief executive officer. Recruitment of a substantive chief executive officer has been suspended in view of the offer from Tradehold API Limited. Sonny Mulenga joined the company in July 2015 as chief operating officer. The determination of the board to enhance shareholder value is unequivocal and the commitment of management to effect the vision of the board commendable. The loyalty of tenants in our properties during difficult times deserves acknowledgment too.
Kenny H. Makala
To download our Annual Report for the year ended 31st December 2015, click on the link below.