Property management firm, Mpico’s profit-after-tax for the six months ended June 30 2023 increased by 61 percent to K5.08 billion from K3.2 billion recorded during the same time last year.

This is according to a published summary of the firm’s unaudited financial results.

The performance is attributed to improved income.

However, the profit is 37 percent less than the K8.1 billion the company posted at the end of 2022.

According to the statement, Mpico’s rental income increased by five percent to K3.46 billion from K3.30 billion in June 2022 due to rent reviews and improved occupancy levels.

It further indicates that during the period, the government was able to settle K1.1 billion arrears with the company.

Fair value gains for the period increased to K4.48 billion from K3.32 billion in the corresponding period last year, representing a 35 percent movement.

Mpico’s total operating expenditure also increased by 29 percent to K2.73 billion from K2.11 billion.

“The government rental arrears decreased to K4.9 billion from K6.0 billion owing as at 31 December 2022.

“This was due to payments made by the government through promissory notes in March and April 2023. Arrears as at 31 July 2023 had reduced further to K3.7 billion after the government had issued further promissory notes of K1.6 billion,” the statement reads.

Mpico Chairperson Edith Jiya said the Board of Directors would continue assessing the position of the company as the year progresses to determine whether it can declare a dividend despite declaring no dividend in 2022.

“The economy continues to experience head-winds emanating from uncertain weather patterns, and foreign currency and power supply shortages. Real gross domestic product growth is therefore projected to average a modest 1.7 percent in 2023, which is a downward revision from the earlier projection of 2.2 percent. In 2022, real GDP growth was estimated at 0.8 percent.

“Inflation on the other hand is projected to remain elevated following potential further hikes in utility tariffs and energy prices, as well as sustained rising maize prices. Due to the projected increase in headline inflation, the tight monetary policy stance, interest rates will likely remain high. The board will continue to monitor the developments surrounding the economic environment and take the necessary mitigating measures to sustain the business,” Jiya said.