BHC profits up 241%
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Botswana Housing Corporation (BHC), the 50 year old 100 % government owned property development company has registered a significant increase in profits.
For their financial year ended 30 September 2021 the Corporation recorded a profit after tax of P18.1 million, an increase of P12.8 million compared to P5.3 million recorded in September 2020, mirroring a rise of over 240 %. The Corporation experienced an increase in profitability on the back of an increase in rental revenue as well as impairment reversal on rental debtors.
The results show that there are signs of recovery from Covid-19, which had adversely affected prior year results. Operating costs and staff costs increased year on year on the back of increased business activity when compared to the same period in prior year, which was characterized by lockdowns imposed to curb the spread of COVID-19. However, costs were well contained, and this led to an increase in costs of only 6%.
The Corporation recorded revenues of P332 million for the six months, a slight decline of 0.9% when compared to the P335 million recorded in the same period in the prior year. On the other side BHC says it has surpassed the sales target it had set for itself during the six months due to the fast selling Tsholofelo apartments.
The rental income, which is the second major revenue stream for the Corporation increased by P17 million to P121 million compared to the same period in the prior year. This income line has increased due to rental increase which was effected from April 2021 and some additional housing units added to investment properties portfolio during the first half of the year.
During the first half of the year there was an overall tenant debtors receivables impairment reversal of P17 million. This significantly improved the Corporations performance for the six months. By close of period under review Botswana Housing Corporation’s total assets amounted to P2.943 billion, a decrease of 9% from P3.225 billion in prior year.
The decline in total assets was mainly due to payment of long-term borrowings of P37 million and contract liabilities of P194 million. Investment properties decreased by P7 million, which represent 1% decrease year on year because of sale of some investment properties. The Corporation’s cash position remained strong, with total cash balances of P344 million, a decrease of P12 million from prior year. The Corporation’s total reserves increased by 0.9% to P1.550 billion from prior year.
BHC Acting Chief Executive Officer Pascaline Sefawe observed in a commentary alongside the financial statements that the Corporation has over the years consistently managed to increase shareholder value. She noted that BHC remains confident of positive results by the end of the financial year. The projected global and local economic growth is expected to have a positive impact on the overall performance of BHC going forward. “Botswana Housing Corporation remains a very resilient business. This is underpinned by its ability to deliver on its projects, financial sustainability and strong liquidity position,” she said.
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Malawi appeals for help over Cyclone Freddy at PAP
As of yesterday evening, the death toll from the Cyclone in Malawi had risen from the initially reported 190 to 225 in a short period of time, over 20 000 people have been displaced, and the worst of fears are yet to come as the fatalities continue to mount. This was reported by a Malawi Member of Parliament attending the Pan African Parliament session in Midrand, South Africa, Hon Steven Mikiya.
Mikiya was giving a statement on behalf of Malawi as the ongoing Pan African Parliament in South Africa.
Mikiya said the Cyclone has wreaked the most havoc in our country’s Southern Region. “The Southern Region, has been hardest hit with widespread heavy rains and strong winds. This caused a rapid rise in water levels and subsequent flooding. Meanwhile, power supply has been disrupted, roads blocked off and rendered impassable and mudslides have also been widely reported,” he said.
He made a special appeal to the PAP: “Where I come from, there is a parable which I would like to share with you which says, “mzako weniweni umamudziwa panthawi ya mavuto.” Simply put, a friend in need is a friend indeed or put loosely, a person who helps at a difficult time is a friend you can rely on.”
Mikiya continued: “Yes! Misfortune has knocked on our door and left in its wake a trail of death and destruction that may take years to fully recover from. However, amidst these difficulties, I have every reason to believe that sometimes when you are in a dark place and think you have been buried, you have actually been planted. My belief, Mr. President, arises out of my faith in this gathering and out of the conviction that it is not coincidental that Cyclone Freddy hit Malawi and Mozambique while the delegations of both countries are here.”
According to Mikiya, the level of destruction, the loss of life, property and the decimation of the entire fabric of established communities has been unprecedented. He noted that all this, is coming at a time when Malawi was starting to show signs of recovery from the deadly COVID-19 pandemic that also came hard on the heels of Cyclone Ana and Cyclone Gombe that left a similar trail of devastation and destruction in Malawi and neighbouring countries.
As of Sunday, this week, from the 12th of March, Malawi and Mozambique have been facing the devastating effects of Cyclone Freddy that made a landfall over Mozambique on Saturday the 11th and reached Malawi by Sunday the 12th of March.
The Malawi legislator said he has absolute faith in the Pan African Parliament, which he described as “a league of nations brought together by a shared ancestry, history, identity as well as our beloved continent which we inhabit”.
Meanwhile, Malawi President, Lazarus Chakwera, has declared a State of Disaster in the affected areas effectively appealing for local and international support for the affected families.
Mikiya appealed to the Pan African Parliament drawing “positive” inspiration from Europe which rallied around Turkey after the destructive earthquakes to bring the much-needed relief and humanitarian aid to the people of Turkey.
He said Africa should demonstrate to the world that the African Union and its Organs are not mere talk shows, but effective institutions which stand up when it matters most.
“Alone, it may take us a lifetime to fully recover, but together, in the Pan-Africanist spirit of Ubuntu, our lives and livelihoods will return to a semblance of normality in record time. This is the time to live by our operative mantra, “One Africa, One Voice.” Mikiya concluded.