The management attributes the decrease to the delayed infrastructure development as the company focused more in raising funds through a debt issue that was only realised in late December 2014.
“The investment of such funds in the infrastructure development at the underlying projects of the group has been delayed which is the primary reason for lower than expected financial performance in 2014,” the firm said.
The company anticipates continued utilisation of the proceeds from the Sh500 million debt issue in project development over the first half of 2015 with benefits achievable in the second half of 2015.
“Such projects developments consist of Infrastructure namely: roads, water boundary walls, sewer, power and lighting services and the development of residential and commercial at our flagship Migaa project. Project development will also be carried out in the Lakeview Heights and Liango projects in Kisumu and Kwale counties respectively, “the firm added.
The firm continues to have substantial amounts held a deferred income inventories and deposits received for future sales which are expected to convert into revenue and profits as development continues.
The firm however remains confident of improved financial performance in 2015.
The firm recorded a 25 percent profit decline in 2013 to Sh80.6 million at the end of December 2013 compared to Sh108.1 million recorded in 2012 financial year.