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HF Group Issues a Profit Warning

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HF Group has issued a profit warning for the year ended 31 December 2018, blaming the poor performance on downward revision of central bank rate, and increase in cost due to redundancy exercise that took place during the year.

Sam Waweru, the mortgage lender’s group managing director, says they expect full-year earnings for the year to fall below the 25 per cent than what was registered in 2017 financial results.

“The trading environment continued to be unfavorable, leading to a slowdown in the real estate sector growth. The tough operating circumstances have led to an increase in the non-performing loans position, which has also adversely affected the business performance,” he said.

He delivered the warning announcement as HF Group sunk deeper into loss territory after posting Ksh332 million LAT in the nine months ended September, compared to a Ksh159.7 million PAT recorded in 2017.

The management, said Mr Waweru, have been in place a number of strategic initiatives whose success will drive profitability in future: “HF has a very strong heritage, providing integrated property and financial solutions for over 53 years, and the Board of Directors remain confident in the resilience of the Group to deliver value to all stakeholders.”

 

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