The Botswana Housing Corporation (BHC) has recorded a profit after tax of P18.1 million for the for the half year financial period 30 September 2021registering an increase of P12.8 million compared to P5.3 million recorded in September 2020. According to the results the Corporation experienced an increase in profitability on the back of an increase in rental revenue as well as impairment reversal on rental debtors. The results show that there are signs of recovery from Covid-19, which had adversely affected prior year results.
Operating costs and staff costs increased year on year on the back of increased business activity when compared to the same period in prior year which was characterized by lockdowns imposed to curb the spread of Covid 19.
However, the report states that costs were well contained, and this led to an increase in costs of only 6%. Statement of comprehensive income Revenue the Corporation recorded revenues of P332 million for the six months, a decline of 0.9% when compared to the P335 million recorded in the same period in the prior year.
Sales revenue, which is the Corporation’s major revenue stream, is said to have not performed well during the first half of the financial year decreasing year on year by 18% to P74 million from P90 million. This negative performance is reported to have been driven by low sales volumes, mainly as a result of the current economic situation of Covid-19. The Corporation’s major customer, government, channeled its resources towards fighting the pandemic. However the Corporation surpassed the sales target it had set for itself during the six months due to the fast selling Tsholofelo Apartments.
The Corporation’s total assets amounted to P2.943 billion, a decrease of 9% from P3.225 billion in prior year. The decline in total assets was mainly due to payment of longterm borrowings of P37 million and contract liabilities of P194 million. Investment properties decreased by P7 million, which represent 1% decrease year on year because of sale of some investment properties. The Corporation’s cash position remained strong, with total cash balances of P344 million, a decrease of P12 million from prior year