Mpico Limited expects 2016 net profit to double
Mpico Limited, a Malawi Stock Exchange (MSE)-listed property management firm, has projected that its profit after-tax for the year ended December 31 2016 is expected to double.
This is according to a statement signed by Mpico company secretary Cosmas Katulukira, which has been released in line with MSE listing requirements.
The requirements demand issuance of a statement if there is reasonable degree of certainty that the financial results for the period to be reported upon will differ by at least 20 percent compared to the previous corresponding period.
In the year ended December 31 2015, Mpico Limited posted an after-tax profit of K766 million, a drop from the previous year’s K1.45 billion due to high interest rates paid on the Gateway Shopping Mall in Lilongwe.
This means that with the projected 100 percent growth in net profit, Mpico’s profit will likely jump to K1.5 billion.
In November this year, Mpico Limited raised K9 billion through a rights issue, one of the biggest in the history of the MSE.
Standard Bank Malawi, which acted as the adviser of the rights issue transaction, said the equity restructure deal highlights the potential the firm and the Malawian real estate and property development business offers.
The bank’s head of investment banking Shakil Satar said achieving an uptake of 82 percent of the rights issue shows a positive reading of the Mpico deal. n
