Mpico 2007 annual_report_presentation


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Malawi Property Investment Company 2007 annual report presentation to investors

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Mpico 2007 annual_report_presentation

  1. 1. MPICO LIMITED Annual presentation to investors Please submit all queries through our investor relations website “ The future looks bright for MPICO”
  2. 2. MPICO LIMITED Presentation of the 2007 Annual Report <ul><li>Overview & prospects </li></ul><ul><li>MPICO develops, rents and manages commercial and residential property and is a subsidiary of Old Mutual (Malawi) group the largest assurer and asset management company in Malawi, a subsidiary of London listed Old Mutual plc (link) </li></ul><ul><li>“ The company has contributed significantly over the past 20 years to urban development in Malawi’s major centres.” </li></ul><ul><li>The Company believes in outsourcing most of the work which does not involve its core activities and this too has contributed to a tightly run, well focused and efficient organisation </li></ul><ul><li>A highly successful listing followed which attracted strong foreign interest and resulted in a diverse shareholder base </li></ul><ul><li>“ In the longer term property investment in Malawi is likely to remain very attractive despite the sharp corrections witnessed recently in the US” </li></ul>
  3. 3. MPICO LIMITED Annual Presentation <ul><li>2007 Highlights </li></ul><ul><li>“ Turnover increased by 29% from MK1.57bn in 2006 to MK2.03bn in 2007 and total expenditure by 3% from MK358.28m in 2006 to MK369.07m in 2007. </li></ul><ul><li>Total profit before tax rose to MK1.7bn from MK1.2bn, representing an increase of 41.7%. </li></ul><ul><li>The growth in property prices in Blantyre during the year was estimated to be between 10% and 15%, for Lilongwe was between 15% and 25% well above the rate of inflation. </li></ul><ul><li>The company embarked upon an exercise of rehabilitating all its properties a few years ago and new lift equipment for Tikwere House and Gemini House arrived toward the end of the year </li></ul>
  4. 4. MPICO LIMITED Annual Presentation <ul><li>SHARE CAPITAL </li></ul><ul><li>The authorised share capital of the company is 1,200,000,000 ordinary shares of 5 tambala each. </li></ul><ul><li>The issued share capital comprises 1,149,023,730 ordinary shares of 5 tambala each </li></ul>MPICO has a strong shareholder base “ MPICO’s shareholding is a result of Malawi’s progressive privatisation policies”
  5. 5. MPICO LIMITED Annual Presentation <ul><li>Highlights – </li></ul><ul><li>Property investment </li></ul><ul><li>portfolio up by MK1.3 bn. </li></ul><ul><li>Lower receivables due at year end </li></ul><ul><li>Non-current liabilities up due to deferred taxation liability </li></ul><ul><li>Higher tax recoverable in 2007. </li></ul>Balance sheet
  6. 6. MPICO LIMITED Annual Presentation <ul><li>Highlights – </li></ul><ul><li>Fair value adjustments to properties main part of income increase. </li></ul><ul><li>Increase in rental income exceeded that of property and administration expenses </li></ul><ul><li>Profit after taxation is up 35.3% </li></ul>Income statement
  7. 7. MPICO LIMITED - Annual Presentation <ul><li>Highlights – </li></ul><ul><li>Strong operating cashflow growth. </li></ul>Cashflow statement
  8. 8. MPICO LIMITED Annual Presentation Earnings per share increase above inflation
  9. 9. MPICO LIMITED Annual Presentation <ul><li>Highlights </li></ul><ul><li>Lilongwe dominates earnings and asset base </li></ul><ul><li>Higher property value appreciation in Lilongwe </li></ul>Business and geographical analysis