Dawn Properties revenue up 3%

Published: 25 September 2013

Dawn Properties' Chief Executive Justin Dowa told the AGM earlier today that revenue for the 4 months to July 2013 grew by 3% to $1.8 million with rental income remaining flat.

Trading conditions, according to Dowa, remained difficult and business hotel occupancies were reasonable at between 50%-60%.

The ongoing high guest impact refurbishment at the Crowne Plaza Monomotapa reduced the number of available rooms which affected revenue.

"The average daily room rates are expected to start creeping up though to catch up with the competitor set with positive outcomes for the business' cash flow," he said.

He noted that resort hotels generally performed poorly with average occupancies below 50%.

"Encouraging though was an improved performance by the Elephant Hills Hotel and Conference Centre in response to the high guest impact refurbishment completed in time for the UNWTO conference," he said.

Dowa indicated that the consultancy business' revenue was 6% ahead of the 2012 performance but was also marginally behind the budget.

The Property Management department lagged both the budget and 2012 performance, a reflection of the current challenges associated with collecting rents.

"Operating expenses were about 1% behind 2012 and 20% below the budget. The cost to income ratio was similar to 2012 at 67%.

"Group profit for the period was 3% behind 2012 but 95% ahead of the budget," added Dowa.

Dawn Properties is currently pursuing 3 initiatives as maximum effort is being exerted to improve the financial performance of the business in the short term, said Dowa.

These initiatives are lease restructuring, development of the Malborough land; and restructuring of the consultancy business.

- zfn

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