HARARE, September 16 (The Source)- Dawn Properties reported an after profit of $480,000 in the six months to June from a loss of $371 000 last year, as the company cut costs by almost 50 percent.
The group’s cost cutting measures included reducing its staff by 60 percent which resulted in operating expenses in the half year period declining by 47 percent to $1,2 million.
Revenue fell from $2,2 million from $1,8 million due to lower revenues in hotel rental business.
The hotel lease business contributed 46 percent to group revenue while the remaining 54 percent came from the property consultancy business.
Hotel operating lease rentals were 22 percent down to $865,000 compared to $1,1 million in the same period last year.
In a statement accompanying financial results on Friday board chair Phibion Gwatidzo said Dawn was in discussions with Barclays Bank and Barclays Bank Pension Fund to acquire Makasa Sun which owns The Kingdom Hotel in Victoria Falls.
The group’s Elizabeth Windsor flat gardens in Marlborough are expected to be complete by year end.
Assets grew by 2 percent to $90, 8 million following the acquisition of Timeshare properties from African Sun Limited for $1,1 million.
The board did not declare a dividend.