Mpico Limited profit hits K2.2 billion
Malawi Stock Exchange (MSE) listed property management firm Mpico Limited has reported a K2.2 billion profit in the year-ended December 2014 compared to K2 billion the previous year.
In the summary of published financial statement, the property firm said its income increased from K3.3 billion in the previous year to K4.5 billion this year largely because of rent reviews and fair value adjustment of investment properties.
The firm said it is currently dealing with huge rental arrears owed by a major tenant, which are negatively impacting on its liquidity, thereby hampering the group’s ability to perform.
“The situation is exacerbated by the economic challenges caused by lack of donor support and flash floods, which are presenting serious implications for Malawi.
“This will have a roll-on effect on our operations; hence, we are planning for a difficult year,” reads a report jointly signed by the company’s board chairperson Dye Mawindo and managing director Peter du Plessis.
Amid the challenges over the company’s position, the board has decided to hold the decision over payment of dividend from 2014 profits until sometime closer to the annual general meeting (AGM) later this year.
Mpico last year launched Gateway, a 17 500 square-metre shopping mall valued at K20 billion.
It is situated in the low density suburb of Area 47 in Lilongwe and has capacity to accommodate 50 tenants out of which 44 had occupied the space by December last year. n
