Malawi Stock Exchange (MSE) listed company MPICO Group has declared a K5.1 billion profit for the year ending 2017, representing a year-on-year increase of 155 percent from last year’s K2.0 billion turnover.
This is despite the company being owed a whooping K9 billion by the government of Malawi, which presently holds 32 percent of the company’s portfolio.
The K5.1 billion was declared Thursday, June 28, 2018 during the 45th Annual General Meeting (AGM) of the company’s shareholders held at Capital Hotel in Lilongwe.
Board chairperson Edith Jiya, who presided over the meeting attributed the increase in profits to a number of factors including rental income growth recorded at the country’s largest shopping/business centre, The Gateway in Lilongwe’s Area 47.
On a negative note, Jiya observed that government’s rental arrears continued to choke the company’s operations. As at December 31, 2017, the government reportedly owed MPICO K8 billion, which, according to Jiya has soared to K9 billion as of present.
“This unfortunate situation has stifled progress in executing the company’s strategic growth initiatives. The Group has not been able to participate in the economic growth of the country as desired,” said Jiya in her report to the assembly.
The MPICO board chair said the Group would continue engaging with the government while at the same time reducing over-exposure of its portfolio to the government, presently at 32 percent: “We have so far reduced the over-exposure from 44 to 32 percent but our target is to reduce it to less than 20 percent,” she said.
Recently, the Group issued a notice of eviction to all tenants with rental arrears