Real estate company, Dawn Properties Limited recorded a 23 percent rise in revenue to US$2.3 million for the half year ended 30 June 2017 with operating expenses gobbling US$1.7 million, up from US$1.2 million incurred during the same reporting period in 2016.
According group chairperson, Phibion Gwatidzo, the increase in expenses was attributed to expenses incurred in renovating Caribbea Bay Hotel in addition to finalization of the ZIMRA tax dispute which saw them settle their outstanding penalties and interest amounting to US$302 000.
“Group revenue totaled US$2.3 million with the property investments and property consultancy segments contributing 58% and 42%, respectively.
Revenues were 23% higher than the same period last year and the increase was primarily driven by improved performance from our hotel properties.
“In addition, the Group also finalized the ZIMRA tax dispute and recognised the outstanding penalties and interest amounting to US$302 000.
“As a result, despite the encouraging increase in revenue, the Group recognized a pre-tax profit of US$544 000, which represents a 23% decrease from the same period last year,” said Gwatidzo.
He added that the first half of the year saw improved rental yields on their properties compared to the same period last year.P
“The first half of the year saw improved rental yields on our properties compared to the same period last year owing to good performance from our anchor tenant, African Sun Limited.
“For the remainder of the year, the Company expects that performance will only get better as we get into the peak season for holiday and leisure,” he said.
Meanwhile Gwatidzo said in view of the current economic challenges and the subdued performance, the Board resolved not to declare a dividend for the period ended 30 June 2017.