Malawi Property Investment Company (MPICO) Limited has posted K2 billion in profit for 2016, more than doubling its profit recorded in 2015.
According to a statement issued highlighting the results for the year ended December 2016, MPICO’s profit after tax has increased to MK2 billion in 2016 from MK0.8 billion in 2015 representing a year-on-year increase of 150%.
The overall group results were also satisfactory as income increased by 89% from K6.1 billion in 2015 to K11.5 billion in 2016.
“The increase is as a result of rent reviews carried out during the year, fair value adjustments of investment properties and interest income,” reads the statement.
However the group realised an increase in operating expenses in the year just ended.
“Total operating expenses went up to MK1.8 billion from MK1.3 billion in 2015. Finance costs went up to MK6.7 billion from MK4.2 billion in 2015,” says the statement.
According to the statement, the increase in operating expenses is mostly due to backlog maintenance expenses.
On the outlook for this year, the group says its future looks bright especially after the successful capital restructuring of MPICO in 2016.
“This will result in financial charges .The group will continue to grow the 3rd party consultancy business,” says the statement.
On Malawi’s economy, the group has projected a boost of economy in this year as inflation rate is expected to be reduced and a good crop harvest realised.
“The economy is expected to pick up following expected good crop harvest and reduced inflation rate,” Reads the statement.
However, the group has said that high interest rates, water and electricity challenges are main downside risks to the growth prospects.
Incomplete article. How much is paid out in dividends. Who signed the statement? You anticipate good business environment due to good crop true but back your argument with economic backing from economics or refer to RBM reports
Next time improve ok.be investigative to give real news