The Botswana Housing Corporation (BHC) has issued a stark warning to investors, projecting a provisional loss of P102 million ($7.5 million) for the financial year ending March 2025, a significant reversal from the P42 million profit before tax reported in the prior year.
The announcement, made via a cautionary note on the Botswana Stock Exchange, reflects a 343% decline in financial performance, equivalent to a P144 million deterioration.
BHC’s directors attributed the expected loss to declining revenues and operating margins, as outlined in the corporation’s unaudited financial statements. The audited results are slated for release by August 31, 2025.
The parastatal’s half-year results to September 2024 already signaled trouble, with profits after tax dropping by P19 million to P10 million, compared to P29 million in 2023. The decline was largely due to increased impairment expenses on rental receivables.
Despite the downturn, BHC reported a 31% surge in total revenue, reaching P358 million from P273 million, driven by growth in rental income, contracts, and facilities management fees.
Total assets grew marginally to P2.817 billion by December 2024, up P10 million from P2.806 billion in 2023, bolstered by capitalized interest and staff costs in work-in-progress housing inventories.
However, investment properties fell by P22 million due to sales and depreciation, while housing inventories rose by P106 million, reflecting ongoing project payments.
