ANNOUNCEMENT RELATING TO THE FINANCIAL YEAR 31 DECEMBER 2014
PROFIT WARNING
The Board of Directors of Home Afrika Limited makes this announcement pursuant to the Capital Markets (Securities) (Public Offers, Listings and Disclosure) Regulations 2002 and the Nairobi Securities Exchange Listing Regulations. The Board wishes to report that profit of the group for the year ending December 31st, 2014 will be at least 25% lower than profit reported for the same period in 2013.
The company had embarked on raising finance through a debt issue since early 2014, the proceeds of which were only realized in late December 2014 and early 2015. As a consequence, 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 the lower than expected financial performance in 2014. Infrastructure development is a critical measure of completion at a project level and therefore a determinant of revenue recognition.
The group continues to have substantial amounts held as deferred income, inventories and deposits received for future sales which are expected to convert into revenue and profit as this development continues.
The group therefore anticipates continued utilization of the proceeds from the Shs. 500 million debt issue in project development over the first half of 2015 with resultant benefits in the form of revenue and profits to be generated in the second half of 2015. Such project development consists of infrastructure; namely roads, boundary walls, water, sewer, power and street lighting services, and the development of residential and commercial units at our flagship Migaa project which includes residences built around amenities and infrastructure services, an 18-hole golf course, hospitality, educational, and medical facilities. Project development will also be carried out in the Lakeview Heights and Llango projects in Kisumu and Kwale Counties respectively.
The group has also significantly increased its marketing efforts to achieve sales of private developer sites at each of its projects and this is expected to start yielding results in the second half of 2015.
The directors remain confident of the substantial underlying long term value and profit generation potential of the group and therefore are of the opinion that there is sustainable upside for the shareholders. The directors are therefore confident of improved financial performance in 2015 and thereafter.
By Order of the Board of Directors
9th April 2015

he expected RINK...to him these were coloured notes.
where is @guru 257...is averaging down the order of the day in this toilet 1/- is imminent