BLANTYRE-(MaraviPost)-MPICO plc has registered MK6.4 billion profit after tax in 2021 the financial year that ended on December, 31,2021, an increase from MK4.3 billion in year 2020 despite the COVID-19 pandemic.
The Group’s board chairperson, Edith Jiya, confirmed the news during the group’s 49th Annual General Meeting (AGM) held in Blantyre.
According to the group, the first part of this year started with numerous challenges that impacted the business’ operations negatively, however, MPICO Plc has remained resistant.
The Group’s chairperson revealed that the company has put in place strategies to cushion against the numerous challenges and it is still optimistic that it will make progress in this financial year.
During the meeting, Jiya also disclosed that the group’s biggest rentals in arrears are owned by the government which is making it difficult for the group to carry out other programs in order to provide quality services to it’s customers.
“Rentals in arrears are impacting us negatively as a property business. The significant chunk of our resources goes to maintenance but due to the delays in payments, we are unable to carry out our maintenance programs within the required timelines.
“Government as our main client was occupying 46%, but due to the outstanding rental arrears it has been incurring, we are looking at finding other clients and allow the the government to have at least 26% of occupancy,” said Jiya.
The group chairperson who is also Old Mutual (Malawi) plc group chief executive officer revealed that government had 3.8 billion remaining balance from the K8.7 billion in rental arrears as of August last year and 3.1 billion was paid out with the commitment to settle the remaining balance in October this year.
The country’s leading real estate and properties managing company has attained a total indicative share trading liquidity of US$601.59K (MWK1.19B), an average of US$50.13K (MK99.06M) per month in the past 12 months, as of 5th June 2022.
The group pointed out that power supply, COVID-19 pandemic and rising inflation are some of challenges impacting the company’s operations hence the need find alternative solutions for business transactions to prevent additional cost to the businesses.
As a company that cares for the wellbeing of its employees, the group revealed that it recently raised the salaries of it’s employees as one way of combating the high cost of living in the country.
MPICO plc, subsidiary of Old Mutual Group, was incorporated in Malawi under the Companies Act, 2013 of Malawi. The Group has 27 investment properties in Malawi occupied by government and the private sector and is listed on Malawi stock exchange.