ICON posts loss due to Covid-19 pandemic

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By Florence Mwale

ICON Properties Plc is among business entities that have been affected by the impact of the coronavirus pandemic.

The company has posted losses in its half year performance report.

In the six month period ending 30 June 2020, it posted a profit after tax of K2.1 billion down from K2.5 billion gained during the same period last year.

A summarised report signed by Chairman Robert Scharar and Director Dasford Kamkwaba, discloses that in the six month period ending June 2020, the company generated a total income of K4.6 billion a drop from K5.8 billion registered in 2019.

They attribute this to the coronavirus pandemic that has affected property revaluation gains and planned rental escalations.

Some of the gains made in revaluation are said to have been driven by internal developments following the conclusion of refurbishments of Lilongwe City Mall.

Apart from that, some NBS Bank plc occupied buildings in Blantyre and Mzuzu also contributed to the gains and are expected to yield future returns.

The statement further discloses that recovery of rentals was also affected as tenants showed difficulties due to the initial reaction to the covid-19 pandemic.

But despite this, they are still being accommodated.

In their outlook of the year, the officials expect a continued stagnation in the demand for rental space in the country as people adapt to the new normal.

On top on that, travel restrictions in the region are expected to affect development works which are in the planning stages.

Works have however commenced to refurbish Kapeni House in Blantyre and installation of parking management systems at their shopping centres is expected to be concluded by the end of the year.

 

 

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