Harare (Equity Axis)- Mash has reported that revenue performance for the first 4 months of the year came in at $1.58 million which was 3% below the same period last year. The company has successively lost revenue in each of the past 4 years since 2013. 2018 is therefore likely to follow suit if the first 4 months trend is maintained throughout the year.
The company however said it expected to record a revenue decline in the quarter and that the performance at $1.58 million was 5% ahead of budget. The decline in revenue was attributed to softening demand, the result of which has been increased voids which in turn was addressed through downward rent reviews.
Voids for the 4 months period were at 29.3% which compares to a more favourable outturn of 27.6% for the full year to September 2017. Mash said it managed to attract a few tenants in the period, but also highlighting that the gap of unoccupied space remains high especially in Harare CBD office space.
Property expenses rose by 10% above last year while performing 24% worse off to budget. Management attributed the performance to increased voids and provision for credit losses.
Admin expenses were however 32% better off to last year driven down by lower staff costs arising from dismissal of top management.
Operating profit rose by 10% to $711,988 over the same period last year but was 8% below budget. The collection ratio as at the end of the period under review was 64%, a slight improvement to 62% over the same period in prior year. $870,000 worth of legacy debt written off..
At the AGM Nicholas Vingirayi and his proxies who represent a 19% shareholding in Mashonaland were kicked out of the board.
Mr Vingirayi who is fighting for control of ZBFH, which in turn controls Mashonaland, is reported to have last reported for board meetings on 5 June 2017.
It has been reported that Vingirayi is vying a breakup of the banking institution as a way of redeeming his assets.
PROPERTY DEVELOPMENT & OUTLOOK
Mash is in the process of finalising the tender process for the servicing of 24 stands on stand 854 of 659, Ruwa in Old Windsor. It is expected that the project will be completed in 8 weeks. A review and reappraisal of projects on land banks is being undertaken so as to take advantage of opportunities arising from the expected turnaround of the economy.
The company is also currently working on prospective retail and office developments. These commercial developments will be informed by actual demand, with the strategy being to pre-let and develop.
On the outlook Mash said it remains well positioned to seize profitable opportunities and grow its portfolio. Presently strategies to protect value of the existing properties are said to be in place.