Botswana Housing Corporation (BHC)'s profit after tax declined by 66%, from P29 million to P10 million, for the 6 months ended 30 September 2024.
The company blamed the decreased profits on increased impairment expenses on rental receivables (P32.4 million vs P13 million last year), higher repairs and maintenance costs (increased by 150% to P55 million), and increased employee expenses.
Despite taking a dent in its profitability, BHC's topline performance showed different fortunes. Total revenue increased by 31% to P357.7 million (from P273.2 million in the same period last year), and rental income grew by 16%, increasing by P27 million to P196 million. Facilities Management and contract revenues also increased.
However, property sales declined, with only 63 units sold compared to 71 in the previous period. BHC planning to start additional projects in Gaborone, Maun, and Mabutsane.The company has also started 312 housing units across various locations (Pilane, Kazungula, Rakops, Nata, Tsabong) and delivered 492 social housing units through the Self-Help Housing Program.
With housing inventories increased by P106 million and cash in hand having decreased by P155 million to P284 million due to loan repayments and project investments, BHC is looking to start more projects to replenish inventory levels, sell old stock and also contain costs.