But sales revenue down 0.9%
Botswana Housing Corporation (BHC) recorded a profit after tax of P18.1 million for the six months that ended 30 September, an increase of P12.8 million compared to P5.3 million recorded in September 2020.
According to the Acting CEO, Pascaline Sefawe, the corporation experienced an increase in profitability on the back of an increase in rental revenue as well as impairment reversal on rental debtors in its half of the year financial results. “The results show that there are signs of recovery from COVID-19, which had adversely affected prior year results,” said Sefawe.
“Operating costs and staff costs increased year-on-year on the back of increased business activity when compared to the same period in the prior year, which was characterised by lockdowns imposed to curb the spread of the COVID-19 pandemic. However, costs were well contained and that led to an increase in costs of only 6 percent.”
Revenue for the housing agency declined by 0.9 percent to P332 million for the six months compared to the P335 million recorded in the period in the prior year. Sefawe attributed the decrease to a reduction in sales revenue which decreased by P16 million, representing 18 percent decrease year-on-year.
“Professional fees and facilities management income declined by 23 percent year-on-year,” Sefawe said. “The reduction in these revenue streams was on the back of low activity on construction projects due to the government’s decision to defer some of the planned third-party projects.”
The Acting CEO noted that the sales revenue, which is the corporation’s major revenue stream, did not perform well during the first half of the financial year decreasing year-on-year by 18 percent to P74 million from 90 million. She said the negative performance was driven by low sales volumes mainly as a result of the currently depressed economic situation due the COVID-19 pandemic.
“The corporation’s major customer, which is the government, channeled its resources towards fighting the pandemic,” she emphasised. “However, the corporation surpassed the sales target it had set for itself during the six months due to the selling of Tsholofelo apartments.”
However, rental income – which is BHC’s second major revenue stream – increased by P17 million to P121 million compared to the same period last year. “This income line has increased due to the rental increase which was effected from April 2021 and some additional housing units added to the investment properties portfolio during the first half of the year,” Sefawe said.