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Icon profit up 47% to K4.5 billion

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Half year profit-after tax for Malawi Stock Exchange-listed property development and management firm, Icon Properties plc, increased by 47 percent to K4.5 billion from K3.1 billion posted during the same period last year.

In its financial statement for the six-month period ended June 30 2022 issued Monday, the firm says the property industry remained resilient amid the economic woes, and that growth was normalising to pre-pandemic levels.

According to the statement, total income for the company went up by 27 percent to K7.5 billion from K5.9 billion last year.

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Icon Properties says its total expenses increased to K1.34 billion from K1.16 billion due to inflationary pressures, non-recurring professional fees and repair and maintenance costs.

“The main cause of the variance with the corresponding period was due to the impact of property revaluation gains which improved in the current period,” the statement reads.

It, however, says rental income was affected by recent vacancies, which offset the impact of growth from filling of refurbished spaces and annual rental escalations.

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On outlook, Icon Properties says the economy will continue facing considerable downward risks with the impact of weather-related shocks and increased cost of doing business arising from the devaluation of the Kwacha and interrupted global market supply chains.

“This is expected to affect the buying power of current and potential clients. The group is also expected to be affected by rising costs in the short term with rental adjustments to be reflected in the medium-term,” Icon says.

Meanwhile, in the statement, Icon Properties says its board of directors have recommended an interim dividend of K801.6 million, representing 12 tambala per share.

At the time of listing on the local bourse in 2019, Icon had 35 properties valued at K50.04 billion, with a total lettable area of 72 630 square metres.

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