This archive report was first published on 26 July 2019.
Home Africa, a property developing firm, has issued a profit warning for its 2018 full year results, citing a net loss of at least KSh226 million.
The company's board of directors has made a preliminary assessment that the December 2018 earnings will be at least 25% lower than December 2017 earnings.
Home Africa recorded a KSh181 million net loss in 2017 financial results, and the 2018 results are expected to be greater losses.
Earlier in April, the company requested an extension of the reporting deadline from 30th April to 31st July, citing efforts to strengthen its capital base.
According to the CEO, Dan Awendo, the firm was seeking ways to strengthen its capital base to achieve its strategic objectives, and this would impact the financial statements.
Home Africa blames the poor financial results on slow growth in the real estate sector, largely caused by limited access to credit and a general decline in spending power among property buyers.
