BY CHIMWEMWE MANGAZI:
After-tax profit for Malawi Stock Exchange (MSE)- listed Mpico plc jumped 155 percent in 2017 to hit K5.1 billion, the firm said on Friday.
Mpico Board Chairperson, Edith Jiya, disclosed this in Lilongwe during the firm’s annual general meeting (AGM).
Jiya described Mpico’s performance as excellent owing to a 13 percent income increase from K11.4 billion in 2016 to K13 billion in 2017.
She attributed the development to rent income growth.
“This was due to rent reviews and increased occupancy levels, mainly at the Gateway Mall, whereas total expenditure for the year decreased to K5.8 billion in 2017 from K8.3 billion in 2016 largely due to lower finance costs emanating from reduced borrowings. The Gateway occupancy increased to 95 percent by the end of 2017 having started the year at 74 percent,” Jiya said.
During the AGM, shareholders questioned the stand on government arrears following an announcement by Capital Hill to cease issuance of promissory notes.
The shareholders also the board to explain why the Gateway Mall roofing was affected by winds last year.
Jiya explained that government rent arrears worsened to K8 billion as at December 2017 and continued to negatively impact the company’s operations.
“These issues are both big concerns of the board. On the roofing issue, there was a technical review that was done immediately after the incident, but we also sought an independent review which will involve the Malawi Institution of Engineers. We are concerned and we are doing everything to make that asset as resilient as possible.
“On the government rental arrears, we have been engaging them and we changed the lease agreement to go to month to month so that we can be collecting regularly and we have been given an assurance that prior to the promissory notes notice, our rental arrears had already been processed and are on the way,” Jiya said.
The company declared a final dividend of K229.8 million, bringing the total dividend for the year to K413.2 million, representing 18 tambala per share.