Brighton Gumbo Business Reporter
LISTED property concern, Dawn Properties’ revenue has declined by 15 percent to $2.3 million for the half year ended September 30, 2015 on the back of the challenging economic environment.
During the comparable period in 2014, the firm’s revenue was $2.7 million.
In a statement accompanying the group’s financial statement, Dawn Properties chairman Phibion Gwatidzo said in light of the prevailing economic environment, rationalisation of operating expenses remains top priority.
“Cost containment, improved revenue generation and value creation would remain the dominant objectives in the short to medium term. In relation to revenue generation, the company is excited about the establishment of a management contract between African Sun and Legacy Hotels,” he said.
During the period under review, the hotel lease segment contributed $1.2 million to total revenue which was lower than $1.4 million recorded in the same period in 2014.
Outstanding lease rentals amounted to $470,940 as at September 30, 2015 compared to $405,255 recorded in the same period the previous year.
The consultancy business contributed about $1.1 million revenue in the period under review.
Operating expenses during the period under review increased to $2.3 million from $1.9 million same period in 2014.
Gwatidzo said, included in the operating expenses figure, was an income tax penalty provision of $0.18 million following the conclusion of the court case that was disclosed as part of 2014 contingent liabilities.
He said coupled with the revenue reductions the period under review largely accounted for the decline in operating profit to $114,105 from 779,158 in 2014.
He said the group was implementing a raft of measures aimed at driving revenue growth and cost containment.
Gwatidzo expressed confidence in the company’s revenue growth and cost containment measures noting that these were expected to bear visible results this year.
A total of 58 residential units in a cluster model are expected to be delivered this year.