DAWN Properties posted revenue of $1,4 million for the period January to June 2016 down 27,1% from the same period last year due to low occupancies.
BY VICTORIA MTOMBA
In a trading update at the company’s annual general meeting on Friday, Dawn Properties managing director Patrick Matute said rent income from owned assets was $620 566 which was 30,1% lower than the same period last year.
“Trading conditions remained challenging and worsened compared to last year on the back of a faltering domestic market and a strong currency compared to regional peers. Occupancies in Q1, which is the low season, were softer on average at well below 50%. However, this situation is expected to turn for the better as we move into the high season,” he said.
Matute said the group expected the coming in of Legacy Hotels Africa to bear fruits towards the end of the year.
Operating profit was $379 307, 193% higher than the comparable period last year, owing largely to the cost cutting measures implemented at the end of last year.
“It is important to state that, despite a significant drop in revenue, the group managed to post a profit significantly higher than the comparable period last year. In light of constrained revenue generation, rigorous cost controls will continue to be the focus to protect profitability,” he said.
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Matute said the group achieved turnover of $3,4 million in the period during the 2015 financial year for the nine months ending December 2015.
During the year 2015, operating expenses were $3,6 million inclusive of once off charges namely retrenchment costs of $500 000 when staff numbers were reduced to 27 from 68 and impairments allowances on the property consultancy segment debtors of $370 000.
Matute said an income tax charge of $3,6 million was recognised inclusive of an income tax expense of 0,93 million relating to the 2009-2014 financial periods and deferred tax impact of $2,3 million, which arose from the finalisation of the case between the group and the Zimbabwe Revenue Authority.
