Harare – Listed property concern, Dawn Properties Limited posted impressive results for the year ended 31 December 2018, with revenue going up 117 percent to US$11.2 million compared with US$5.1 for the same period in 2017.
Net profit for the period increased by 16 percent to US$3.5 million from US$3.0 million recorded in 2017.
Driving the growth was recognition of property development income coming from development in Marlborough and a stronger performance from the property investment portfolio.
The property management unit remained the company’s main driver of revenue, with a contribution of US$1.4 million.
Operating expenses stretched on the back of property investments and general increase in inflationary pressures which gathered pace particularly in the last half of 2018.
“Operating expenses amounted to US$4.2m compared with US$2.9m for the same period last year, representing a 44% increase in costs. The significant increase came on the back of general increase in costs in line with inflationary pressures experienced in 2018 and renovation work in some of the property investments, with specific mention of Blue swallow lodges in Nyanga,” Chairman Phibion Gwatidzo said in a statement accompanying the group’s financials.
Income from hotels was 36 percent higher than the same period last year reaching US$4.0 million, mainly attributable to increased rentals from Elephant Hills Resort and Conference up by 46 percent, Troutbeck Resort up by 40 percent and Holiday Inn Mutare, up by 36 percent.
Likewise, revenue from timeshare rentals which encompasses Blue Swallow Lodges in Nyanga and Kingfisher Cabanas in Kariba, grew by 39 percent from US$195 519 in 2017 to US$270 820 in 2018.
The property consultancy business saw revenues scaling up 27 percent to close at US$2.5 million driven mainly by agency department, up by 118 percent and property management up by 19 percent.
However, profit after tax from this unit decreased by 20 percent from US$534 733 to US$428 125 as a result of an increase in operating expenses.
Over the same period, property development unit also performed well with Dawn managing to complete its first major project in June 2018.
“While we had hoped to have completed the project much earlier, the delivery of the residential cluster units was significant for the business and our plans going forward,” said Gwatidzo.
“As at 31 December 2018, 36 units had been sold for a total of US$4.4 million. A balance of 22 units is still on the market and it is the intention of the Company to sell them all in 2019.”
Equity Axis News