HARARE, May 28, (The Source) – Dawn Properties has reported a seven percent decline in revenue to $5,2 million for the year ended March 31 as liquidity constraints hit income from property investments.
Operating profit for investment property segment slumped 73 percent to $464,000 from $1,7 million in the prior year. The segment’s poor performance, coupled with an ‘impairment of goodwill and conversion of debentures,’ contributed to the group’s drop in operating profit by three percent to $1,3 million.
“Operating expenses decreased by three percent, notwithstanding an impairment loss on goodwill of $120,186 and once off transaction costs for the conversion of the linked unit debentures amounting to $144,977,” said the group on Thursday in a statement accompanying financial results.
Rent income for the hotel portfolio increased by six percent to $2,5 million, driven by conferences in Victoria Falls and Harare.
The property services segment recorded a 79 percent decline in profit to $119,000 compared to the prior year while revenue declined by 17 percent to $2,6 million.
However, the segment realized three percent savings from the cost cutting measures.
The group is banking on the development of its Marlborough land this year to drive margins in the short-term.