HARARE, March 31 (The Source) – Dawn Properties after tax profit reached $1,02 million for the year ended December compared to a 9 month comparative period loss of $3,84 million largely driven by cost reductions and the restructuring.
The group changed its financial year end from March 31 to December 31 to align it with that of its majority shareholder Brainworks Capital a local private equity firm which holds a 66,8 percent stake in the group.
Chairman Phibion Gwatidzo said profitability in 2017 will be driven by further cost reductions, expected occupancy increase in Victoria falls and property development.
During the period, turnover was $4,34 million compared to $3,43 million in the 9 months to December 2015 while operating expenses narrowed to $2,7 million compared to $3,6 million, representing a 25 percent reduction.
“The significant reduction in operating costs are as a result of the Board and Management’s focus on creating a leaner and more efficient structure through a staff rationalisation exercise carried out at the end of 2015,” said Gwatidzo in a statement accompanying the financials.
On operations,revenue from hotel property portfolio increased to $2,4 million from $1,8 million in the nine months to December 2015.
Rental yield was lower at 3.2 percent for the year in sync with the general tourism sector challenges.
In property development, the business unit initiated its first residential development project, the Elizabeth Windsor Gardens, a 58 unit cluster home development in Marlborough, Harare at the beginning of 2016.