Home Afrika's pretax profit slumps In 2013
25 April 2014, 10:30
Nairobi - Kenyan property developer, Home Afrika Ltd posted on Thursday a near 22 percent drop in its 2013 pretax profit to 183.46 million shillings ($2.11 million), it said on Thursday.
Shares in Home Afrika, which is the sole listed firm on the Nairobi bourse's segment for small firms (GEMS), plunged 9.9 percent in Thursday's session, after it issued a profit warning late on Wednesday, to close at 4.55 shillings each.
The company blamed the drop in profit on the revision of its accounting policies. The new policies require it to stop recognising revenue from housing projects in its books before certain milestones of a construction project are met.
Home Afrika said it was confident of a better performance this year due to the launch of various housing projects in the country.