RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023
AUDITED SUMMARY CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
Rental income
Increase in fair value of investment properties
Other income
Dividend income from subsidiaries
Total income
Total operating expenses and finance costs
Profit before taxation
Taxation
Profit for the year
APPROPRIATION OF PROFIT FOR THE YEAR
Realised profits
Unrealised profits
Amount attributable to members of the parent company
Amount attributable to non-controlling interests
Number of shares used for calculation
Basic earnings per share (K)
- Realised (K)
- Unrealised (K)
SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL POSITION
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Ordinary share capital
Realised reserves
Unrealised reserves
Share premium
GROUP | COMPANY | ||||||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | ||||
K'000 | K'000 | K'000 | K'000 | ||||
6 882 542 | 6 841 041 | 2 590 041 | 2 468 693 | ||||
8 932 121 | 6 690 900 | 3 014 582 | 2 428 500 | ||||
1 532 388 | 1 027 878 | 1 830 126 | 1 183 365 | ||||
- | - | 400 000 | 1 716 000 | ||||
17 347 051 | 14 559 819 | 7 834 749 | 7 796 558 | ||||
(6 408 912) | (5 554 560) | (4 536 902) | (3 543 388) | ||||
10 938 139 | 9 005 259 | 3 297 847 | 4 253 170 | ||||
(3 871 376) | (867 783) | (242 576) | (784 832) | ||||
7 066 763 | 8 137 476 | 3 055 271 | 3 468 338 | ||||
947 031 | 1 089 817 | 259 523 | 1 600 247 | ||||
4 521 781 | 4 636 627 | 2 795 748 | 1 868 091 | ||||
5 468 812 | 5 726 444 | 3 055 271 | 3 468 338 | ||||
1 597 951 | 2 411 032 | - | - | ||||
7 066 763 | 8 137 476 | 3 055 271 | 3 468 338 | ||||
2 298 047 460 | 2 298 047 460 | ||||||
2,38 | 2,49 | ||||||
0,41 | 0,47 | ||||||
1,97 | 2,02 | ||||||
GROUP | COMPANY | ||||||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | ||||
K'000 | K'000 | K'000 | K'000 | ||||
114 902 | 114 902 | 114 902 | 114 902 | ||||
6 350 314 | 5 906 364 | 9 456 389 | 9 699 948 | ||||
42 165 340 | 37 643 559 | 20 836 541 | 18 040 792 | ||||
8 626 938 | 8 626 938 | 8 626 938 | 8 626 938 |
SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF CASH FLOWS
Cash flows from operating activities
Cash generated from operations
Dividend received
Interest received
Interest paid
Dividend paid
Dividend paid to non-controlling shareholders
Cash flows generated from operating activities
Taxation paid
Net cash (used in)/generated by operating activities
Cash flows from investing activities
Additions to plant and equipment (Costs)/proceeds on disposal of equipment Receipts from staff long-term loans
Net cash used in investing activities
Cash flows from financing activities
Repayment of borrowings
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
GROUP | COMPANY | ||||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | ||
K'000 | K'000 | K'000 | K'000 | ||
1 668 526 | 4 103 207 | 570 270 | 1 244 935 | ||
- | - | - | 1 716 000 | ||
1 097 564 | 900 847 | 353 979 | 284 096 | ||
(778 603) | (720 909) | (226 583) | (167 126) | ||
(503 082) | (758 359) | (503 082) | (758 359) | ||
- | (584 000) | - | - |
1 484 405 | 2 940 786 | 194 584 | 2 319 546 |
(2 233 075) | (1 443 688) | (1 579 453) | (1 209 198) |
(748 670) | 1 497 098 | (1 384 869) | 1 110 348 |
(19 190) | (30 628) | (13 765) | (23 442) |
(893) | 2 223 | (893) | 2 223 |
13 776 | 13 324 | 13 776 | 13 324 |
(6 307) | (15 081) | (882) | (7 895) |
(616 938) | (437 095) | - | - |
(616 938) | (437 095) | - | - |
(1 371 915) | 1 044 922 | (1 385 751) | 1 102 453 |
379 654 | (665 268) | 75 324 | (1 027 129) |
(992 261) | 379 654 | (1 310 427) | 75 324 |
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY
Non-controlling interests
Total equity
LIABILITIES
Non-current liabilities
Current liabilities
Bank overdraft
Total liabilities
TOTAL EQUITY AND LIABILITIES
ASSETS
Non-current assets
Investment properties
Other assets
Total non-current assets
Current assets
Trade and other receivables
Promissory notes receivable
Cash and cash equivalents
Total current assets
TOTAL ASSETS
57 257 494 | 52 291 763 | 39 034 770 | 36 482 580 |
24 906 546 | 23 308 595 | - | - |
82 164 040 | 75 600 358 | 39 034 770 | 36 482 580 |
14 217 191 | 11 159 743 | 5 994 324 | 5 751 748 |
5 614 124 | 5 729 067 | 4 109 071 | 1 433 427 |
1 318 971 | - | 1 318 971 | - |
21 150 286 | 16 888 810 | 11 422 366 | 7 185 175 |
103 314 326 | 92 489 168 | 50 457 136 | 43 667 755 |
86 718 868 | 77 786 747 | 26 943 289 | 23 928 707 |
718 739 | 3 415 988 | 14 890 366 | 14 943 309 |
87 437 607 | 81 202 735 | 41 833 655 | 38 872 016 |
10 454 319 | 10 906 779 | 7 245 112 | 4 720 415 |
5 095 690 | - | 1 369 825 | - |
326 710 | 379 654 | 8 544 | 75 324 |
15 876 719 | 11 286 433 | 8 623 481 | 4 795 739 |
103 314 326 | 92 489 168 | 50 457 136 | 43 667 755 |
Basis of preparation
The summary consolidated and separate financial statements are prepared in order to meet the Malawi Stock Exchange Listing Requirements for summarised financial statements. The directors have considered the requirements of the Malawi Stock Exchange and believe that the summary statements of financial position, summary statements of comprehensive income, summary statements of changes in equity and summary statements of cash flows are sufficient to meet the requirements of the users of the summary consolidated and separate financial statements. The amounts in the summary consolidated and separate financial statements are prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards. The summary consolidated and separate financial statements have been derived from the Annual Consolidated and Separate Financial Statements which were approved by the Board of Directors on 06 March 2024 and are available on the company's website, www.mpicomw.com.
2023 FINANCIAL YEAR RESULTS PUBLICATION COMMENTARY Review of the results
The MPICO plc Board is pleased to announce the results of the Group for the year ended 31 December 2023.
Core operations registered strong growth, with profit before tax increasing by 21% to MK10.93 billion in 2023 from MK9.0 billion in 2022 due to improved income at MK17.35 billion (2022: MK14.56 billion). However, profit after tax decreased by 13% to MK7.07 billion in 2023 from MK8.14 billion in 2022 on account of a once-off deferred tax adjustment of MK2.6 billion following de-recognition of prior year deferred tax asset relating to investment properties. The Board determined that based on current taxable profits projections deferred tax asset relating to investment properties may not be fully utilised during the allowable period.
Rental income marginally increased by 1% to MK6.9 billion in 2023 from MK6.8 billion in 2022. Although the business achieved the planned rent reviews during the year, rental income growth year on year was limited by voids due to economic challenges. On the other hand, total operating expenditure for the year increased by 15% to MK6.41 billion in 2023 from MK5.55 billion in 2022 as efforts to manage expenses continued.
Government rental arrears decreased to MK3.5 billion as at 31 December 2023 from MK6.0 billion the same period in 2022 due to payments made by Government during the year. Further payment was received post year end leaving rental arrears at MK2.1 billion as at 29 February 2024.
Outlook*
INDEPENDENT AUDITOR'S REPORT ON THE SUMMARY CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF MPICO plc
Opinion
The summary consolidated and separate financial statements, which comprise the summary consolidated and separate statements of financial position as at 31 December 2023, and the summary consolidated and separate statements of comprehensive income, summary consolidated and separate statements of changes in equity, and summary consolidated and separate statements of cash flows for the year then ended, and the related notes, are derived from the audited consolidated and separate financial statements of MPICO plc for the year ended 31 December 2023.
In our opinion, the accompanying summary consolidated and separate financial statements are a fair summary of the audited consolidated and separate financial statements of MPICO plc, and on the basis described on the basis of preparation paragraph.
Summary consolidated and separate financial statements
The summary consolidated and separate financial statements do not contain all the disclosures required by the International Financial Reporting Standards. Reading the summary consolidated and separate financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited consolidated and separate financial statements and the auditor's report thereon. The summary consolidated and separate financial statements and the audited consolidated and separate financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited consolidated and separate financial statements.
The audited consolidated and separate financial statements and our report thereon
We expressed an unmodified audit opinion on the audited consolidated and separate financial statements in our report dated 2 April 2024. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements for the current year.
Directors Responsibility for the Summary Consolidated and Separate Financial Statements
Directors are responsible for the preparation of the summary consolidated and separate financial statements in accordance with the basis of preparation paragraph.
Auditor's Responsibility
Our responsibility is to express an opinion on whether the summary consolidated and separate financial
SUMMARY CONSOLIDATED AND SEPARATE STATEMENTS OF CHANGES IN EQUITY
At the beginning of the year
Realised profit for the year
Amount attributable to minority interests
Unrealised profit for the period
Dividend declared - Final 2021
Dividend declared - Interim 2022
Dividend declared - Final 2022
Dividend declared to minority interest
GROUP | COMPANY | |||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | |
K'000 | K'000 | K'000 | K'000 | |
75 600 358 | 68 805 249 | 36 482 580 | 33 772 602 | |
947 031 | 1 089 817 | 259 523 | 1 600 247 | |
1 597 951 | 2 411 024 | - | - | |
4 521 781 | 4 636 627 | 2 795 748 | 1 868 090 | |
- | (436 631) | - | (436 631) | |
- | (321 728) | - | (321 728) | |
(503 081) | - | (503 081) | - | |
- | (584 000) | - | - | |
82 164 040 | 75 600 358 | 39 034 770 | 36 482 580 |
The Reserve Bank of Malawi (RBM) projects GDP growth of 3.8% in 2024 from 1.5% in 2023 subject to the performance of the agricultural season, foreign exchange availability and the International Monetary Fund's (IMF) Extended Credit Facility (ECF) Program. However, inflation outlook remained elevated due to potentially below-average maize harvest, and the second-round effects of currency re-alignment.
The Board will continue to monitor the economic developments and take appropriate actions to preserve value for all stakeholders.
Dividend
The Directors are recommending a final dividend amounting to MK873 million in respect of 2023 profits, representing 38 tambala per share. There was no interim dividend for 2023. The final and interim dividends in respect of 2022 profits were K503 million and K322 million, respectively making a total dividend of K825 million for 2022 representing 36 tambala per share. The Dividend will be paid after approval by the Annual General Meeting (AGM) to be held in June 2024.
By order of the Board.
Edmund Hami | Edith Jiya |
DIRECTOR | CHAIRPERSON |
* Unaudited |
statements are a fair summary of the audited consolidated and separate financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing 810 (Revised) Engagements to Report on Summary Financial Statements.
Chartered Accountants
Christopher Kapenda
Partner
24 April 2024
A ONE-STOP LANDED PROPERTY SOLUTION PROVIDER
A MEMBER OF THE | GROUP |
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MPICO plc published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 06:33:20 UTC.