In compliance with the requirements of the Securities (Registration of Securities) Rules, 1993, and the listing rules of the Lusaka Stock Exchange, Real Estate Investments Zambia PLC announces the financial results of the Group for the six months ended 30th June 2016. These interim financial results are derived from the Group’s Management Accounts, which have been approved by the Directors, but have not been audited.
The Directors are pleased to present the Interim Results for the period ended 30th June 2016 which highlight year on year rental income increase of 61% with profit before other income, finance cost and tax growing by 105%.
In the 4th quarter of 2015, the Board and Management set out to restructure the Group’s operations to enhance its profitability. The Directors are pleased to confirm that the changes are bearing fruit and have greatly contributed to the Group’s performance in the first half of the 2016 financial year.
It is important to highlight two figures in the abridged statement of profit or loss and other comprehensive income:
- In 2015, included in the figure of K21,837,000 under other operating income is K21,615,000 related to REIZ’s disposal of its 49% stake in an equity accounted investee, Burnet Investments Limited.
- In 2016, the figure of K2,003,000 under exceptional expenses relates to expenses incurred in relation to the offer that was received from Tradehold API Limited.
The increase of the value of investment property between the two periods was reported on in the 2015 annual report and was attributed to the revaluation of investment property at 31st December 2015 which resulted in an up-lift due to US$ growth in rentals, improvements in service cost recovery and devaluation of Kwacha. The fair value of investment property has been reassessed as at 30th June 2016 by external independent property valuers Knight Frank Zambia Limited who possess appropriate recognised professional qualifications and have requisite experience in the location and category of the properties valued. Revaluation is done at 30th June and at 31st December each year in order for financial statements to provide reliable and more relevant information about the Company’s financial position and its financial performance.
The Directors resolved to pay an interim dividend for the year ending 31st December 2016 of K0.10 per share. The interim dividend will be payable to members registered in the books of the company on close of business on Friday 28th October 2016. Warrants in payment will be posted during the week commencing Monday 31st October 2016.
The Directors will review the results for the full year and will recommend a final dividend that will take into account the interim dividend paid on those results for approval by Shareholders at the Annual General Meeting (AGM) that will be held before 31st March 2017.
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Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia
|BY ORDER OF THE BOARD
|Kenny H. Makala
|Sydney E Popota
7 September 2016