19 Jul 2022

 Botswana Housing Corporation (BHC) has recorded an operating surplus of P61 million.

Briefing the media on the BHC financial results for the year ended March 31, 2022 recently, the corporation’s chief finance officer, Mr Diratsagae Kgamanyane said the surplus represented a significant increase against the P6 million operating loss realised in the previous year.

Mr Kgamanyane also told the media that BHC’s profit before income tax increased significantly from P2 million in the prior year to P72 million.

“This resulted in an overall increase in surplus after tax from P1 million prior year to P64 million for the year under review. The growth in surplus was driven mainly by rental revenue that increased by 15 per cent from P209 million to P240 million and reduction in expenditure from P272 million to P214 million on the back of cost containment,” he said.

He added that sales of high margin investment properties also contributed significantly to the growth in surplus as well as impairment reversals on receivables amounting to P25 million.

“Notably, the corporation has recorded a total revenue of P702 million, 8 per cent decrease when compared to the P760 million recorded in the prior year. Sales revenue which was one of the major revenue streams returned impressive margins, contributing to the overall growth in the gross margin,” he said.

He said their strategy was to maintain rental units at 10 000 units to ensure sustainability.

Meanwhile, Mr Kgamanyane said professional fees revenue line declined significantly by 64 per cent to P5 million from P14 million in the prior year, due to suspension of planned projects by the corporation’s clients due to COVID-19 pandemic.

Further, he said facilities management revenue decreased by P24 million from P69 million recorded in prior year to P45 million due to reduction in projects.

Again, he said total operating expenses for the period under review were P258 million compared to P241 million for prior year, an increase of seven per cent.

For her part, BHC acting chief executive officer, Ms Pascaline Sefawe said the corporations’s strategic intents for the years 2017 to 2023 remained a priority.

Ms Sefawe said the corporation remained focused in its mission to solicit project financing to diversify its income model to ensure sustainability and projects delivery.

She said their plan was to leverage on and fast track products delivery through strategic partnerships as well as collaborating with financial institutions to improve on products uptake.

“We want to optimise market intelligence and segmentation through identifying specific needs for the unserved segments and offer tailor-made products and services,” she said.

Under the current strategy, Ms Sefawe said Self Help Housing Agency (SHHA) project would facilitate government employees on D2 and C scale to qualify and own property.

She said for the current financial year, BHC was looking to increase its housing by erecting 336 flats in Block 7, 100 units in Maun, 212 units in Kazungula and 84 units in Letlhakane. ENDS