Zimbabwe Stock Exchange-listed property concern, Dawn properties profits for the full year to September 30 2012 rose to $7,3 million from $574 000 driven by the disposal of non-performing non-core entities.
Reporter Businesss Reporter
Revenue for the group’s hotel portfolio grew by 8% to $1,3 million during the period under review amid expectations that the top line will maintain an upward trend.
“The group achieved a profit of $7,3 million for the period compared to $574 000 last year.”
“This is after accounting for a loss of $765 000 on disposal of the agro-business and deferred tax write back of $7,4 million,” said newly appointed group chairman Phibion Gwatidzo in a statement accompanying the group’s unaudited results.
Income tax credit for the period stood at $7,3 million compared to $968 000 recorded during the same period last year.
Turning to the group’s property evaluator CB Richard Ellis, Gwatidzo said the unit was currently undergoing a rebranding exercise after its franchise had expired.
“You will be aware that CB Richard Ellis (Private) Limited operates under a service licence agreement entered into with CB Richard Ellis Limited, an English company,” he said.
“In terms of the agreement, the licence expires on December 31 2012. The licensor has determined that they no longer wish to renew the licence and consequently we are obliged to rebrand.”
“The rebranding exercise has commenced . . .”
Gwatidzo said the group was now geared for growth following the resolution of a dispute with hospitality group African Sun Limited.
Initially, Dawn claimed the hospitality concern had frequently breached its lease agreement.
But African Sun denied ever violating the terms of its 50-year lease agreement with Dawn.
In September, Dawn Properties withdrew a lawsuit in which it was seeking the eviction of African Sun Limited from properties leased to the hospitality group.
This came after African Sun, which gained more control of the property firm, successfully mounted a corporate coup to avoid eviction, which Dawn attempted following a dispute over rentals.